S&T AG to buy Echelon's power grid operations

Sponsored by

Echelon Corp. signed a definitive agreement to sell its grid operations to S&T AG, a publicly traded European IT systems provider with an existing focus on smart grid products and services.

The closing is conditioned upon regulatory approvals. The companies expect the deal to close by the end of the year.

Under the terms of the agreement, Echelon will receive about $5 million in upfront consideration, dependent in part on the value of net assets at closing. After fees, expenses, and restructuring charges are considered the company expects the net benefit to be nominal.

Echelon will also become a supplier of its narrowband high-reliability power line communications chips to S&T for use in their smart meters and related products. Echelon will receive future benefits in the form of revenue from the purchase of these products, as well as rental income and potential performance-based consideration of up to $1 million.

As part of the transaction about 60 current Echelon employees are expected to join S&T. The acquisition is anticipated to be accomplished via a unit established by S&T.

S&T is committed to supporting the Open Smart Grid Protocol (OSGP), which Echelon has helped spearhead, and to join other OSGP partners in support of this standard for the control of smart grids. S&T also plans to partner with members of the Grid Modernization VAR program, adding the S&T product portfolio to expand the number of products and services the program can offer.

Sponsored by

Most Popular Articles


CURRENT MAGAZINE ISSUE

September 2014
Volume 18, Issue 8
file

Utility Products Topics

Transmission & Distribution
                       Vehicles & Accessories
Tools & Supplies   Safety
Line Construction & Maintenance   Test & Measurement

WEBCASTS

There is no current content available.

UTILITY PRODUCTS BUYERS' GUIDE

POWER INDUSTRY JOBS

Industry Company Pages

Keep up-to-date with the latest news and articles from some of the prominent utility product companies and resources.

BUYER'S GUIDE PRODUCTS

Meter Socket Converter

AE Product’s Meter Socket Converter (CNV) converts various Meter Forms to fit the desired application. 14S, 15S or 16S Socket to accept 2S Meter. Optional features available.

Service Disconnect Adapter with Electronic Meter Energizing

AEP’s Service Disconnect Adapter disconnects customer load but maintains power to the electronic meter. The meter maintains reading and communications links for AMR/AMI operations while only disabling the load side.

Meter Socket Jumpers - Perfect for Submetering Applications

AEP’s Meter Socket Jumper offers a safe and easy means of bypassing a meter socket. The Socket Jumper can be used with either Ringless or Ring style Meters.