Cisco to buy smart grid specialist Arch Rock

Cisco aims for a bigger slice of the £110bn global smart grid market

Network giant Cisco has announced its intention to acquire IP wireless smart grid pioneer Arch Rock Corporation.

Buying the San Francisco-based firm would "position Cisco as a strategic partner to utilities working to better manage power supply and demand," said Cisco's smart grid business unit general manager Laura Ipsen.

"Arch Rock's wireless mesh technology enhances Cisco's IP-based, end-to-end smart-grid offerings," added Ipsen.

Arch Rock's IP wireless mesh technology is designed to allow utilities to connect smart meters over a scalable, multi-path network.

Financial terms of the deal were not disclosed, and Cisco expects the transaction to close by the end of 2010.

The deal complements a strategic alliance with smart grid solution provider Itron announced earlier this week by Cisco.

Cisco said its partnership with Itron will result in a standards-based, secure technology for a full IPv6 implementation of field area communications to support smart metering,
intelligent distribution automation and interfaces to the customer premise.

Itron provides electricity, gas, water and heat meters, network communication technology, and collection systems for the utilities industry.

Industrial market research firm SBI estimates that the global smart grid technologies market will grow 150 per cent between 2009 and 2014 to hit $171bn (£110bn).