GE has signed an agreement to acquire privately-held Lineage Power Holdings, Inc., from The Gores Group, LLC.
Lineage Power is a provider of high-efficiency power conversion infrastructure technology and services for the telecommunications and datacenter industries.
According to a press release, the deal will open the door for GE Energy technology to be deployed in the $20 billion per year power conversion space, where the demand for reliable, high-quality power is driven by the growth in cloud computing and mobile Internet voice, video and data applications.
Lineage Power complements GE because it is based on technology leadership, deep customer relationships, proven domain expertise of its employees, a strong services business and a global growth strategy.
It is right within GE’s core expertise—managing electricity. Lineage Power had revenues of approximately $450 million in 2010. The transaction is valued at approximately $520 million or eight times enterprise value on 2011 EBITDA basis. The deal is expected to close in the first quarter of 2011, subject to customary closing conditions, including receipt of regulatory approval.
Dan Heintzelman, GE Energy Services president & CEO said that there will be 1.1 billion smartphones sold globally by 2013 and every new mobile device plugs into an infrastructure that requires an ever increasing amount of high-quality power. He added that the growth in high-bandwidth mobile internet applications and cloud computing is accelerating that demand. A globally networked planet needs a lot of power to keep spinning, he added.
Craig Witsoe, CEO, Lineage Power said that joining GE will enhance the company’s resources to provide best-in-class energy technologies to its telecommunications and data communications customers. He add that the company’s leadership in high-efficiency power conversion solutions has positioned it to serve the explosive growth in mobile internet demand driven by 3G and 4G/LTE wireless networks that enable the Amazon Kindle, Apple iPhone and iPad, Google Android (News - Alert) smart phones and other mobile devices.
Mandira Srivastava is a TMCnet contributor. She works as a full-time writer, ghostwriter and blogger, and has more than two years of experience in print and Web media. She has also worked on company brochures, website content and product descriptions, as well as proofreading and editing content. To read more of her articles, please visit her columnist page.
Edited by
Janice McDuffee
