By Greentech Lead Team: Itron, a provider of energy and
water resource management solutions, has signed an agreement to acquire
privately held SmartSynch, for $100 million. The acquisition will strengthen
Itron’s integrated cellular communications offering.
SmartSynch is a provider of point-to-point smart grid
solutions that utilize a cellular network for communications. The company has
more than 130 customers, including nine of the top ten utilities in North
SmartSynch’s technology will meet the needs of full
cellular smart grid network deployments, such as the 1.9 million electric
residential and commercial & industrial meter end-point deployment at
“SmartSynch is a compelling strategic acquisition that
strengthens our position in the industry and with our energy and water utility
customers. SmartSynch brings a highly complementary technology to our existing
communication network offering, broadens our portfolio and enhances Itron’s
ability to support our customers with their smart grid projects,” said LeRoy
Nosbaum, Itron president and chief executive officer.
Both companies have partnered for years to deliver
integrated solutions to some of Itron’s largest smart grid customers. Itron and
SmartSynch’s complementary technologies used to provide a solution in areas
where RF mesh networks are not available, or are cost prohibitive.
“Our companies share existing customer relationships,
integrated technologies and a common culture that will enable us to pursue new
opportunities. Itron’s diversified portfolio, combined with our cellular
technology, makes us the best team in the business going forward,” said Stephen
Johnston, SmartSynch chief executive officer.
Itron expects that the acquisition will add approximately $50 million in revenues and
be dilutive to non-GAAP net earnings per share by less than $0.10 for fiscal
year 2012. The acquisition is anticipated to be accretive to revenue and
non-GAAP earnings per share in fiscal year 2013.
Recently, Itron and Cisco announced the launch
of their next-generation smart grid platform.