Smart grid mergers and acquisitions: some very big deals in 2012


By: SGN Staff


Mercom Capital's report on venture capital funding and M&A activity in 2012 showed some impressive numbers overall. VC spending in smart grid in 2012 was $434 million in 40 deals, well above the $377 million in 50 deals in 2011. And there were some very big money moves in smart grid M&A transactions: almost $17 billion in 2012 compared to almost $5 billion in 2011 and $1.3 billion in 2010.


Top smart grid M&A transactions for 2012:

·         $11.8 billion acquisition of grid and equipment company Cooper Industries by Eaton

·         $2.3 billion acquisition of smart meter company Elster by UK investment firm Melrose

·         $2 billion acquisition of security and home automation company Vivint by Blackstone


On the VC side, Mercom's report said home and building automation companies raised the most funding in nine deals representing $198 million, followed by $82 million for demand response, $76 million for grid optimization and $63 million for AMI.


The top investment transaction was the $136 million for from ABS Capital Partners, Equis Capital Partners, NJTC Venture Fund and Technology Crossover Ventures. Silver Spring Networks raised $30 million from Hitachi and Tendril raised $25 million from VantagePoint, Good Energies, RRE Ventures, GE and Siemens.


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