Japanese engineering giant Toshiba said yesterday it would buy Swiss utility metering technology firm Landis and Gyr for US$2.3 billion.
Toshiba said it has agreed to take the entire equity of the firm, a global leader in energy management solutions for utilities.
“The acquisition, valued at US$2.3 billion including net debt, will substantially enhance the scope of Toshiba’s smart grid and smart community businesses,” the Japanese company said in a statement.
Smart grids are intelligent power distribution systems seen as key for nations to use energy more efficiently.
Toshiba aims to offer one-stop solutions for power monitoring and management by combining its expertise in energy management with Landis and Gyr’s advanced smart metering technologies, services and customer base.
Toshiba said it hoped to strengthen its smart grid operations, with the global market for the environmental technology expected to rise six-fold to ￥5.8 trillion (US$71 billion) over the next ten years. It said it would aim to achieve net sales of ￥700 billion in the smart grid and smart community operations in the year to March 2016, more than doubling annual sales of ￥300 billion.
Landis+Gyr, as a Toshiba subsidiary, will continue its existing operations and maintain its employees, the Japanese firm said.
The Swiss company will continue to try to increase its share in the expanding Chinese, Indian and Brazilian markets, while also aiming to earn more business in Europe and the US.