Itron buys network connectivity provider to power more cities
Itron Inc. (Nasdaq: ITRI) is acquiring Silver Spring Networks Inc. (NYSE: SSNI) for the target’s smart grid and utility products that are used to keep cities connected to power generators. The transaction is valued at approximately $830 million.
Silver Spring provides Internet of Things (IoT) technology to help cities, utilities, and companies operate more efficiently. Silver Spring’s networking technology, called SilverLink, allows customers to communicate with devices connected to the power grid. The technology also allows customers to use data generated by the devices on the network to offer insights needed for decision making. As IoT has emerged due to the growing usage of devices and technology applications, companies rely on networks and cloud-based systems to remain connected. San Jose, California-based Silver Spring operates in the U.S., Canada, Australia, New Zealand, South America, Asia and Europe.
“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,” states Itron CEO Philip Mezey.
Itron sells products and offers services needed for the management and analyzing of energy and water. The buyer, headquartered in Liberty Lake, Washington, distributes a portfolio of measurement products. Itron’s products are used to measure electricity, gas, water and thermal energy. The deal for Silver Spring allows Itron to create a “large recurring revenue opportunity in the high-growth software and services segment,” according to the company.
M&A involving technology, media and telecommunications are expected to soar throughout 2017, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Recent SaaS and technology deals include: Bregal Sagemount’s investment in Internet access provider Single Digits; Salesforce.com’s plan to purchase cloud-commerce services distributor Demandware Inc. (NYSE: DWRE); Marlin Equity Partners’ buying of telecom provider Tangoe Inc.; and Windstream Holdings Inc.’s purchase of Broadview Networks Holdings Inc., an Internet-based telephone service provider.
Centerview Partners and Credit Suisse (NYSE: CS) are acting as financial advisers to Itron, while Jones Day is serving as legal counsel. Evercore Inc. (NYSE: EVR) is acting as financial adviser to Silver Spring, and Fenwick & West LLP as legal counsel.