The transaction also increases Itron’s presence in the Industrial IoT segment
The technology and services company, Itron, is to acquire Internet of Things (IoT) network and connectivity specialist, Silver Spring Networks, to accelerate smart city and smart grid innovation.
The two companies have announced that they have signed a definitive agreement for Itron to acquire all outstanding shares of Silver Spring for $16.25 per share in cash.
With its global footprint in the smart utility and smart city sectors, Silver Spring generated more than 20 per cent of its revenues through its primarily recurring managed services and SaaS solutions, an area of strategic focus for Itron. To date, Silver Spring has delivered more than 26.7 million network-enabled devices across five continents.
Itron anticipates approximately $50 million in annualised cost synergies to be substantially realised within three years of completing the transaction by optimising combined operations and expenses.
“The addition of Silver Spring brings more capabilities to our offerings and advances our strategy of delivering highly secure, value-generating solutions for the critical infrastructure within utilities, smart cities and the broader industrial IoT sector,” said Philip Mezey, Itron’s president and chief executive officer.
“By converging our complementary, standards-based technologies, we will enhance customer efficiencies with solutions that optimise devices, network technologies, outcomes and analytics. This enables us to increase investment in new solutions and accelerate innovation for our combined customer base, covering more than 200 million people."
This move also increases Itron’s presence in the industrial IoT segment. Mezey added: “Combining Silver Spring’s entrepreneurial culture and proven capabilities with Itron’s operational strengths, depth of solutions and customer intimacy will result in a company that is well-positioned in the fast growing critical infrastructure space.
"We look forward to welcoming Silver Spring’s talented team of engineers and professionals to Itron.”
Mike Bell, president and chief executive officer of Silver Spring Networks, said that joining forces with Itron will enable it to help more utilities and cities adopt the industrial Internet, improve their performance and reliability, and better position themselves for a connected future.
He added: “This strong combination will address end-to-end solutions for our customers and will create immediate value for our stockholders; it will also provide new opportunities for our employees as part of a larger, global technology leader for the Internet of Important Things."
The transaction is expected to close in late 2017 or early 2018 and is subject to customary closing conditions, including regulatory approval and the approval of Silver Spring’s stockholders.
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