The overlooked success factor: Alstom Grid cited for its M&A prowess

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Quick Take:  Alstom Grid went through a quiet phase a few years back, preoccupied by an odd process that found the division going from Alstom to Areva and then back again. During that period, it did not participate as actively as the other Big Boys in the smart grid acquisitions spree.

 

More recently, however, the company has gotten back in the swing and is beginning to shop seriously. According to long-time industry analyst Chuck Newton the firm is not only good at spotting companies to buy, it is also doing a good job of integrating them into the mothership.

 

If I had to pick one big-company success factor that's most often overlooked, it would be skill at bringing smaller companies into the fold. Far too many industrial giants think the game is to spot the right company at the right price. In reality, that's just the beginning of the hard work. Kudos to Alstom Grid for succeeding at something that has eluded several of their direct competitors. I've reprinted two paragraphs from Newton's story, or click the link to download his latest Market Trends Digest with the full story.  - By Jesse Berst

 

ASAT and Alstom: One Year Post-Merger

 

By Chuck Newton

 

It has already been about one year since the acquisition of ASAT by Alstom Grid was completed, last mid-December. ASAT had been a small, but growing and successful, Calgary-based provider of substation automation and integration products and services. This acquisition strengthens Alstom’s existing Substation Automation operations in Montreal and Philadelphia.

 

In a late November 2013 interview with ASAT’s founder, Manford Kwan, it became clear to this writer that the merging of ASAT products into the global Alstom Grid portfolio has gone amazingly smoothly, much better and much faster than we have seen in several decades of observing similar mergers among technology companies, including those serving the electric power industry. ASAT provides products (DAP substation servers), software (suite of substation automation applications) and services (from training to substation system design, commissioning and start-up to ongoing hardware and software maintenance).


 

Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.

 

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