Toshiba said on Thursday that it would buy Landis & Gyr of Switzerland for $2.3 billion, bolstering its presence in energy and infrastructure technology solutions. The Japanese company, which is known for its computers and household electronics, has moved increasingly into energy-efficient solutions that operate on the digital network, the so-called smart grid. Last year, it created a division dedicated to the business, which focuses on modernizing the infrastructure of cities and towns.
The acquisition will enhance that group. Landis & Gyr, which operates in 30 countries, provides metering systems and related technologies for utilities.
“The combination of Landis & Gyr’s advanced smart-metering technologies and services, plus its extensive customer base, with Toshiba’s comprehensive expertise in energy management for utility companies and the corporate (buildings) and consumer (homes) sectors, will allow Toshiba to provide customers with sophisticated one-stop solutions that offer communities optimum power monitoring and management, plus effective applications and services based on cloud computing technologies,” Toshiba said in a statement.
Analysts predict the smart-grid market, which includes stalwarts like General Electric, could grow to more than $70 billion, about six times its current size. Toshiba is aiming to expand its share of the business from $3.6 billion in revenue to more than $8.5 billion by 2015.
Toshiba did not disclose how it expected the Landis & Gyr acquisition to affect its financial picture. (source : dealbook.nytimes.com)