What $2.3 billion can get you
The smart-grid business world is abuzz today with the news that Japan’s Toshiba Corporation has just bought itself a much bigger profile in the sector with its $2.3 billion acquisition of Swiss metering firm Landis+Gyr.
So what exactly is Toshiba getting for its investment of 2 billion dollars and change (186.3 billion, if you count in yen)?
- A cutting-edge company with the stability that comes from being 115 years old. While it’s now big into smart meters, Landis+Gyr has been around since 1896, so metering is in its blood.
- In one fell swoop, a new clientele of thousands. Landis+Gyr boasts 8,000-plus utility customers in 30 countries across five continents. That means Toshiba is paying about $287,500 per existing client … not a bad investment when you consider the potential for additional sales and then throw in any new utility customers for free.
- Promising financial returns. Between March 2010 and March 2011, Landis+Gyr reported revenues of $1.59 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) of $215 million.
- One word: influence. Big-time influence when you consider Landis+Gyr’s high profile across global markets. In its 2010 report on “Europe’s Smart Meter Outlook for 2020,” Greenbang ranked the Swiss firm the number-two influencer in the EU, second only to Echelon.
With Landis+Gyr in its portfolio, Toshiba — not previously a brand leader in the smart-grid space — now has ample reason to believe it can achieve a most ambitious goal:
“Our intent is to become a global leader in the smart community business by 2020,” said Hideo Kitamura, Toshiba’s corporate executive vice president.
