Zug, Switzerland — In a move aimed at significantly bolstering its new smart-grid growth platform, Toshiba Corp. will acquire Landis+Gyr, a global provider of energy management solutions for utilities, for $2.3 billion in cash. The acquisition is expected to close in the third quarter of 2011.
Landis+Gyr is a pioneer in the development of smart metering, networking and service products for the utility industry, and boosts more than 8,000 utility customers globally. Toshiba plans to build this business as a standalone platform.
Toshiba expects the acquisition to help the company become a global leader in the smart-grid market by 2020.
“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, in a statement. “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,” he added.
Toshiba will retain the Landis+Gyr brand. There are no plans for job reduction or restructuring as a result of this transaction. Andreas Umbach will assume the role of Landis+Gyr’s chief executive officer and Cameron O’Reilly will become the executive deputy chairman until the closing of the transaction.