Landis+GYR On Acquisition Warpath In Smart Meter Race
BMI View : The announcement by Landis+Gyr to double its revenue through an ambitious acquisition plan highlights the strong growth prospects for the global smart meter and smart grid sectors. The majority of developed countries have already introduced some form of smart meter rollout programmes, with the EU alone poised to install some 200mn meters by 2020.
On May 27, Switzerland-based Landis+Gyr announced its intention to more than double its revenue to USD4bn by 2020 through a series of takeovers. The company is the largest maker of power meters for utilities, and is looking to acquire companies specialising in power metering and networks as it seeks to benefit from a global investment drive in smart meters. Landis+Gyr recorded revenues of USD1.5bn in 2013, and was acquired by Japan's Toshiba in 2011 for USD2.3bn (1.5 times of sales).
The announcement by Landis+Gyr highlights the strong growth prospects for the smart meter and grid sectors. Technological advances have greatly increased the functionalities of electricity meters, and smart meters offer a number of key advantages over conventional electromechanical meters. For consumers, smart meters are able to provide real-time consumption data and in some cases, electricity prices, which allow consumers to moderate and plan their consumption patterns. Meanwhile, smart meters help to reduce the operational costs for utilities as they eliminate the need for costly meter reading visits. These features are extremely valuable, and the majority of developed countries have already introduced some form of smart meter roll-out programmes. Some of the more noteworthy programmes include: