Toshiba Corporation has signed an agreement with Innovation Network Corporation of Japan (INCJ), for Landis+Gyr Acquisition.
As per the deal, INCJ will be a strategic investment partner in Toshiba’s acquisition of Landis+Gyr.
Toshiba will set up a special purpose vehicle (SPV) in Switzerland for the acquisition of smart meter maker Landis+Gyr capitalised at $1.7bn.
INCJ will also invest $680m in the SPV and secure 40% of its equity, while Toshiba’s equity stake will be 60% or $1.02bn.
The total cost of the acquisition will be $2.3bn, and the cost to Toshiba, including the assumption of Landis+Gyr’s net debt of $600m will be $1.62bn.
Toshiba notes that the acquisition would create a partnership in the expanding energy management offerings field, where the company has already engaged in comprehensive discussions on equity participation with a number of potential partners.
Toshiba has secured all necessary regulatory approvals for Landis+Gyr’s acquisition in early July this year.
The company is now finalising arrangements for completing the transaction with the private equity funds and individual shareholders, who own Landis+Gyr, to close the acquisition by the end of July this year.
