The wait is over: Toshiba to buy Landis+Gyr

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Quick Take: This latest news from the mergers and acquisitions world signals that the Japanese industrials are now turning their attention to smart grid. Korea also is ambitiously moving into the smart grid market, and every indication is that they intend to make smart grid one of their major industries. With a weak dollar, this is a good time for foreign corporations to snap up American companies. – Jesse Berst

Ending a period of fairly intense speculation, Japanese electronics company Toshiba Corp. announced today that it will buy Switzerland-based meter maker Landis+Gyr for $2.3 billion.

After the deal is complete, Toshiba plans to expand its presence in the smart grid market where it is already involved in smart grid and smart community projects in Japan, the U.S., France and India. Toshiba said the two companies plan to build total energy solutions for smart grid and smart community initiatives.

A Landis+Gyr press announcement says Toshiba will keep its brand intact, and no job reductions or restructuring are planned as a result of the deal. Landis+Gyr will be a "stand-alone platform to offer utilities the most comprehensive product and solutions set in the industry," the release said.

Toshiba hasn't disclosed how it plans to finance the buy, but a Reuters news story suggests that Toshiba probably will have enough cash for most of the cost, depending on Landis+Gyr's debts. As Smart Grid News reported last week, GE was considering a bid for the smart meter maker but later dropped out – and that the company had received bids from Toshiba and other private equity firms.

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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