Toshiba snaps up smart grid firm for £1.4bn

Japanese electronics giant Toshiba is set to buy smart meter firm Landis+Gyr for £1.4bn ($2.3bn) in cash.

The deal comes as Toshiba anticipates that utilities firms will ramp up investments in smart grid technology in the coming years.

“With this transaction, Toshiba will now share our vision of helping the world manage energy better,” said Andreas Umbach, chief executive of Landis+Gyr.

The deployment of smart grid technology looks set to be one of the largest technology projects taking place in the UK over the coming decade.

Next month, the UK’s Department of Energy and Climate Change (DECC) will hold a so-called industry day, inviting technology suppliers to learn about the potential opportunities they have to contribute to the Smart Metering Implementation Programme.

DECC wants smart meters installed in 26 million households by 2020 to monitor gas and electricity consumption. The information these meters produces will be supervised by a country-wide body, called the central Data and Communications Company. The DCC will be responsible for awarding the IT and communication contracts to support the smart grid programme.

Toshiba’s deal for Landis+Gyr is subject to regulatory approval and is expected to close in the third quarter of 2011.