Toshiba is acquiring Smart Grid dynamo Landis+Gyr, the global leader in energy management solutions, for $2.3 billion in cash.
The acquisition is intended to provide Toshiba with a new growth platform that specifically targets Smart Grid opportunities that will benefit both utility customers and consumers. Toshiba intends to build the business as a stand-alone platform to offer utilities the most comprehensive product and solution set in the industry.
Landis+Gyr, has been a pioneer in creating smart metering, networking, and service products to meet the needs of its more than 8,000 utility customers worldwide.
Toshiba’s Corporate Executive Vice President, Hideo Kitamura, says, “We welcome Landis+Gyr, the world leader in smart metering products and services, to the Toshiba family. 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.”
Toshiba will retain the Landis+Gyr brand, and there are no plans for job reduction or restructuring as a result of this transaction. As of today, 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 deal is finalized. After the close, O’Reilly will assist Toshiba “in further growing its smart grid business as well as pursuing other private interests.”
Landis+Gyr CEO Andreas Umbach notes, “Over the past 10 years we have built the world leader in smart metering. 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”.
Cameron O’Reilly, the founder of the investment group responsible for Landis+Gyr’s growth over the last nine years adds: “The shareholders and I are very proud to have come this far in creating a global leader in an essential industry undergoing transformational growth. We are delighted that Toshiba fully shares our vision, and intends to take Landis+Gyr to the next stage in its exciting development.”
Credit Suisse and Lazard led the sale process while Deutsche Bank and Goldman Sachs co-advised Landis+Gyr shareholders on various liquidity alternatives. 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