Back in May 2011 Toshiba Corporation acquired Landis & Gyr for the price of $2.3 billion in cash. The goal of the acquisition is to create the dominant market leader in the smart grid opportunity. 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.
With over 8,000 utility customers globally, Landis+Gyr has been a pioneer in creating leading-edge smart metering, networking and service products to meet the needs of the utility industry. Toshiba will retain and enhance the Landis+Gyr brand and there are no plans for job reduction or restructuring as a result of this transaction.
Landis & Gyr is covered in VDC's Global Wireless Industrial Networking Products study and was identified as the leading provider of wireless routers serving smart grid opportunities worldwide. Although the wireless industrial networking business represents just a small fraction of Landis & Gyr's revenues, the acquisition further signifies the continuing need for companies to invest in technology, particularly networking, to further productivity, achieve real-time visibility, agility and operational flexibility.
Applications such as smart metering and other smart grid related applications are well suited to benefit from the use of wireless connectivity provided by routers and other networking products. Power Generation was the second largest consuming industry of wireless networking infrastructure products under study and is forecast to experience robust growth in shipments of such products over the next five years.
It is clear that PAC Man fever will continue to impact suppliers operating in markets and industry segments which are undergoing dynamic changes. Power Generation is one such industry and wireless networking infrastructure products are critical components which can help facilitate and channel such dynamic forces for the better.
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