Toshiba Corporation, a world leader in electronics and social infrastructure systems, announced that it has entered into a definitive agreement to acquire the entire equity of Landis+Gyr AG, a company incorporated in Switzerland and a global leader in energy management solutions for utilities, from the company's shareholders and warrant owners. The acquisition, valued at US$2.3 billion (approximately 186.3 billion yen) including net debt, will substantially enhance the scope of Toshiba's Smart Grid and Smart Community businesses and position the company as a global competitor with world-class capabilities.
The acquisition is subject to regulatory approvals and other customary closing conditions.
Benefits of the Acquisition
Projects to establish Smart Grids are being promoted by countries and regions around the world, toward achieving the modern and more environmentally friendly infrastructure essential for a low carbon society and sustained economic growth. Forecasts indicate that the next decade will see the Smart Grid market grow to 5.8 trillion yen*1, six times today's level.
While the original Smart Grid business mainly covers power system network management, the latest trend is a shift to a higher level concept, 'Smart Community'. This supports diverse infrastructure systems, including energy, water, transportation and ICT, delivers comprehensive solutions to consumers, and secures the integrated modernization of the overall infrastructure supporting entire towns and cities.
Toshiba Group, an innovator in environmentally conscious businesses that support realization of a low carbon society, positions the Smart Community business as a new focus area and is determined to maximize its presence and capabilities in the business.
Established in 1896, and now with over 8,000 utility customers globally, Landis+Gyr has pioneered the development of leading-edge smart metering, networking and service products to meet the needs of the utilities industry. Its business operations now extend to 30 countries and regions across five continents.
Landis+Gyr provides a wide range of smart meter solutions, from advanced interactive communication technologies to various applications and services based on data collected from the meters.
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.
By drawing on the diverse capabilities of each company and maximizing synergies, Toshiba will enter new business domains encompassed by the Smart Community concept, centering on integrated energy management systems.
Upon completion of the acquisition, Toshiba will promote operational and technological synergies and further growth in its Smart Grid and Smart Community businesses, toward achieving net sales of 700 billion yen in fiscal year 2015, against current annual sales of 300 billion yen.