Landis+Gyr and Pacific Equity Partners announced Thursday they are forming a joint venture to acquire smart meter operations in Australia.
The new partners are forming a joint venture centered around spinoff company intelliHUB Holdings Pty Ltd. They are acquiring Acumen to take over management and servicing for a network of already deployed 170,000 smart meters and will also hold a long-term contract with Acumen parent Origin Energy Ltd. for the rollout of additional advanced metering across Australia.
Swiss metering firm Landis+Gyr established the basic intelliHUB business three years ago in preparation for the mass market rollout of smart meters in the nation under new rules. Ultimately, the joint venture hopes to deploy a significant portion of the estimated 8 million new smart meters expected across Queensland, South Australia, New South Wales and the Capital Territory, according to the release.
"The Australian market is just commencing a major widespread deployment of smart metering technology,” Cameron Banks, managing director of Sydney-based Pacific Equity Partners, said in a statement. “This requires experienced partners that are acutely focused on the customer experience and getting the most out of this once-in-a-generation technology refresh."
The combined cash and intelliHub contribution from Landis+Gyr will be up to 75 million Australian dollars ($57 million U.S.). The new business will retain both the inTelliHub and Acumen brands.
"Landis+Gyr is the global leader in smart metering and offers the largest portfolio in the industry for utility companies and retailers that help bring the grid into the digital age,” Landis+Gyr CEO Richard Mora said in the release. “We have been investing for several years in our products and solutions for Australia and the partnership with intelliHUB will be crucial to giving the Australian market access to the best of our global smart metering products, solutions and services technologies.”
In addition, inTelliHUB has entered into a five-year meter supply contract with Landis+Gyr. That contract could deploy up to 800,000 meters across Australia and New Zealand.
The transaction is expected to close in coming months.