News

Landis+Gyr to be Acquired by Toshiba for $2.3 Billion

May 19, 2011 by Jeff Shepard

Landis+Gyr announced that Toshiba Corp. has entered into a definitive sale agreement with the shareholders of Landis+Gyr, under which Toshiba will acquire Landis+Gyr, a company specializing in energy management solutions for utilities, for US$2.3 billion in cash, to build what the company’s describe as the world’s Smart Grid leader.

The acquisition is designed to create a new growth platform within Toshiba specifically targeting the global Smart Grid opportunity, bringing benefits to both utility customers and consumers. According to Toshiba, the combination will extend Toshiba’s tradition of first-class innovation, product portfolio and commitment to research and development along side Landis+Gyr’s iconic brand and reputation for excellence in smart metering solutions.

With over 8,000 utility customers globally, Landis+Gyr is described as a pioneer in creating leading-edge smart metering, networking and service products to meet the needs of the utility industry for more than 100 years. Toshiba is acquiring this capability and know-how, and intends to build the business as a stand-alone platform to offer utilities the most comprehensive product and solution set in the industry.

"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."

There are no plans for job reduction or restructuring as a result of this transaction. Andreas Umbach has assumed the title of Landis+Gyr’s Chief Executive Officer and Cameron O’Reilly will become the Executive Deputy Chairman until the closing of the transaction, after which he looks forward to assisting Toshiba in further growing its smart grid business as well as pursuing other private interests.

"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 SA.

The acquisition remains subject to regulatory approvals and other customary closing conditions and is expected to close in the third calendar quarter of this year.

More news and information regarding the latest developments in Smart Grid electronics can be found at Darnell’s SmartGridElectronics.Net.