Schneider Electric, the French power equipment and grid giant that’s spent billions on smart grid acquisitions, is making one of its biggest bids yet — a 3.3-billion-pound ($5 billion) offer to buy industrial control and technology vendor Invensys. If recent history is any guide, Schneider won’t be the only bidder.
Invensys said in a Thursday statement that it has received an offer from Schneider to be acquired for 505 pence per share — 319 pence per share in cash and 186 pence per share in new Schneider stock. That price represents a 15-percent premium over the publicly traded company’s share price, and Friday saw a commensurate bump in the company’s share price, up 16 percent, to 5.1 pounds ($7.70).
via Schneider Electric Eyes Invensys in Another Big Smart Grid Acquisition : Greentech Media.
Back in 2010, ABB took a big step toward taking on the challenge of integrating back-office information technology (IT) and grid-side operations technology (OT) into a common architecture for the smart grid. That’s when the Swiss grid giant spent $1 billion to buy Ventyx, an Atlanta-based company with a suite of software, collected via acquisitions and internal development, for power plant and transmission grid project planning, grid load forecasting, network optimization and business analytics.
via ABB and Ventyx: The Long March to Smart Grid IT/OT Convergence : Greentech Media.
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.
via Smart Grid: Smart grid mergers and acquisitions: some very big deals in 2012.
The market for distribution automation and smart grid networking hardware in the U.S. is projected to grow to nearly $1.7 billion in 2012, according to IMS Research. But recent acquisitions of smart grid companies indicate that European suppliers also want a piece of this pie and are looking to expand into the smart grid in North America.
via European firms want piece of U.S. smart grid pie – FierceSmartGrid.
Mergers, acquisitions, and equity investments have been plentiful in the electric power equipment business. This has been fueled by utility “smart grid” spending, but many of the more recent acquisitions have as much to do with grabbing market channels as with buying new technology. Since ARC Advisory Group wrote about consolidation in the industrial Ethernet switch business last month, one major and one minor acquisition have already taken place in the space. Clearly, despite the growing risks represented by Eurozone stress, cash-rich companies remain willing to invest.
via Ongoing Acquisitions Change the Complexion of the Smart Grid Space – ARC Helps Clients Get Value from Technology.
This week in the Smarter Utility space saw several companies banding together to enhance their smart grid-related products and services.
First, Verizon Wireless (News – Alert) and intelligent energy load management company Consert, Inc., teamed up in an effort to manage energy loads for the members of two Texas utilities – Bluebonnet Electric Cooperative and Pedernales Electric Cooperative.
via Smarter Utility – TMC’s Smarter Utility Week in Review: Smart Grid Acquisitions.
General Electric is looking for acquisitions in smart grid technology, the head of the U.S. company’s northern and eastern European smart grid business told Financial Times Deutschland.
“The fact that smart grids are now becoming reality is attracting a lot of investors and potentials buyers,” the paper quoted Keith Redfearn as saying in an article published on Friday.
via GE eyes acquisitions in smart grid technology: report | Reuters.
General Electric said it will buy a FMC Tech, a smart grid start-up company that surfaced in “GE’s 2010 ecomagination Challenge,” a $200 million open innovation challenge that searches far and wide for the best and brightest bulbs in the smart-grid chandelier.
By taking the plunge on FMC Tech, GE is expanding its offerings in a particularly promising area of the smart-grid space: distribution automation.
via GE Gobbles Up More of the Smart Grid – William Pentland – Clean Beta – Forbes.