The sale is pending regulatory approvals, the companies said in a statement, but should be completed in three months. The purchase, Toshiba’s biggest since its Westinghouse Electric acquisition five years ago, would give the Japanese company access to Landis+Gyr’s customers across 30 markets as countries, including the United States, upgrade their electrical systems. The global smart-grid market may surge sixfold to $71 billion over the next decade, according to Toshiba.
Founded in 1896, Zug, Switzerland-based Landis+Gyr makes so-called smart meters that allow utilities to check energy use remotely and can be connected to equipment that shows customers when rates are highest. Its clients include E.ON AG, Centrica Plc (CNA)’s British Gas unit and PG&E Corp. the likelihood of power disruptions. In January, Landis+Gyr was chosen by State Grid Corp. of China to help build the world’s largest smart grid, agreeing to supply more than 10,000 commercial and industrial advanced electricity meters in six Chinese provinces.
Credit Suisse Group AG and Lazard Ltd. (LAZ) advised closely held Landis+Gyr, while Deutsche Bank AG and Goldman Sachs Group Inc. (GS) advised the Swiss company’s shareholders, including Allianz Capital Partners and Australian Capital Equity, according to the statement. JPMorgan Chase & Co. is advising Toshiba.