Complementary technology broadens technology portfolio and customer
solutions
LIBERTY LAKE, Wash.--(BUSINESS WIRE)--
Itron, Inc. (NASDAQ:ITRI) announced today that it has signed an
agreement to acquire privately held SmartSynch, Inc. in a transaction
valued at $100 million. The acquisition will bring greater choice to
utility customers across the spectrum of smart metering deployments and
strengthen Itron's integrated cellular communications offering. The
parties expect the transaction to close in the second quarter of 2012.
"SmartSynch is a compelling strategic acquisition that strengthens our
position in the industry and with our energy and water utility
customers," said LeRoy Nosbaum, Itron president and chief executive
officer. "SmartSynch brings a highly complementary technology to our
existing communication network offering, broadens our portfolio and
enhances Itron's ability to support our customers with their smart grid
projects."
SmartSynch, headquartered in Jackson, Mississippi, is a leading provider
of point-to-point smart grid solutions that utilize a cellular network
for communications. The company has more than 130 customers, including
nine of the top ten utilities in North America. SmartSynch and Itron
have partnered for more than a decade, delivering integrated solutions
to some of Itron's largest smart grid customers. Itron and SmartSynch's
complementary technologies can be used to provide a solution in areas
where RF mesh networks are not available, or are cost prohibitive. In
addition, SmartSynch's technology will successfully meet the needs of
full cellular smart grid network deployments, such as the 1.9 million
electric residential and commercial & industrial meter end-point
deployment at Consumers Energy.
"Utility customers are demanding more options and this is a combination
that just makes sense," said Stephen Johnston, SmartSynch chief
executive officer. "Our companies share existing customer relationships,
integrated technologies and a common culture that will enable us to
pursue new opportunities. Itron's diversified portfolio, combined with
our cellular technology, makes us the best team in the business going
forward."
Excluding amortization of acquired intangible assets, purchase
accounting adjustments and acquisition related charges, the company
anticipates that the acquisition will add approximately $50 million in
revenues and be dilutive to non-GAAP net earnings per share by less than
$0.10 for fiscal year 2012. The acquisition is anticipated to be
accretive to revenue and non-GAAP earnings per share in fiscal year 2013.
Itron was advised on the transaction by Centerview Partners LLC.
SmartSynch was advised by Stephens Inc.
About Itron
Itron is a leading provider of energy and water resource management
solutions for nearly 8,000 utilities around the world. We offer
end-to-end solutions that include electricity, gas, water and heat
measurement and control technology; communications systems; software;
and professional services. With more than 9,000 employees doing business
in more than 130 countries, Itron empowers utilities to responsibly and
efficiently manage energy and water resources. To realize a sustainable
future, start here: www.itron.com.
Forward Looking Statements:
This release contains forward-looking statements concerning our
expectations about operations, financial performance, sales, earnings
and cash flows. These statements reflect our current plans and
expectations and are based on information currently available. The
statements rely on a number of assumptions and estimates, which could be
inaccurate, and which are subject to risks and uncertainties that could
cause our actual results to vary materially from those anticipated.
Risks and uncertainties include the rate and timing of customer demand
for our products, rescheduling of current customer orders, changes in
estimated liabilities for product warranties, changes in laws and
regulations, our dependence on new product development and intellectual
property, future acquisitions, changes in estimates for stock-based and
bonus compensation, increasing volatility in foreign exchange rates,
international business risks and other factors which are more fully
described in our Annual Report on Form 10-K for the year ended December
31, 2010 and other reports on file with the Securities and Exchange
Commission. Itron undertakes no obligation to update publicly or revise
any forward-looking statements, including our business outlook.
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Itron, Inc.
Vice President, Corporate Communications
Sharelynn
Moore, 509-891-3524
sharelynn.moore@itron.com
or
Vice
President, Investor Relations
Barbara Doyle, 509-891-3443
barbara.doyle@itron.com
Source: Itron, Inc.
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