$2.3bn deal to build smart grid leader
By Nick Flaherty www.flaherty.co.uk
Toshiba is to buy Landis+Gyr for $2.3bn to build the world leader in Smart Grid technology.
The acquisition is designed to create a new platform within Toshiba specifically targeting the global Smart Grid opportunity for both utility customers and consumers. Landis+Gyr has over 8,000 utility customers around teh world and has been pioneering smart metering, networking and service products.
“We welcome Landis+Gyr, the world leader in smart metering products and services, to the Toshiba family” said Hideo Kitamura, Toshiba’s Corporate Executive Vice President . “Our intent is to become a global leader in the Smart Community business by 2020. Together with Landis+Gyr, we will accelerate the development of our combined product and service portfolio to empower utilities and their end customers and to provide sophisticated Smart Community solutions in the global market.”
Toshiba says it will retain and enhance the globally respected Landis+Gyr brand, and continue to meet and exceed customer requirements worldwide. There are no plans for job reduction or restructuring as a result of this transaction.
“Over the past 10 years we have built the world leader in smart metering,” said Landis+Gyr CEO Andreas Umbach. “As a growth platform for Toshiba, Landis+Gyr will have the resources and power to complement, and indeed accelerate, our product offering to utilities. With this transaction, Toshiba will now share our vision of helping the world manage energy better”.
‘The shareholders and I are very proud to have come this far in creating a global leader in an essential industry undergoing transformational growth,” said Cameron O’Reilly, the founder of the investment group that has supported the building of Landis+Gyr over the past 9 years. “We are delighted that Toshiba fully shares our vision, and intends to take Landis+Gyr to the next stage in its exciting development”. Major shareholders of the selling Landis+Gyr investor group include interests associated with Allianz Capital Partners, Australian Capital Equity, DLJ Merchant Banking Partners, Dubai International Capital, Marinya Holdings, Sir Douglas Myers, Sir Anthony O’Reilly, Propel Investments, and Sofina.