According to industry observer Martin LaMonica, GE is buying Lineage Power "to get access to its power electronics equipment aimed at telecom and data center operators. General Electric's decision to acquire Lineage Power Holdings reflects the growing importance of power electronics amid the explosive growth of portable computers and phones."
The buy, according to Bloomberg (News - Alert), gives GE customers from Verizon Wireless to Hewlett-Packard (News 
- Alert) Co. Lineage, owned by private-equity firm Gores Group LLC, offers equipment "that converts power to direct current from alternating current as well as power-module and data-center systems in the $20 billion so-called micro-power industry," GE officials said in a statement.
"Every new mobile device plugs into an infrastructure that requires an ever increasing amount of high-quality power. The growth in high-bandwidth mobile Internet applications and cloud computing is accelerating that demand," Dan Heintzelman, GE Energy Services CEO, said in a statement.
GE has signed a deal to pay about $520 million for Atlanta-based Lineage Power, LaMonica reported, "to beef up its energy and electric grid-related portfolio. It gives GE efficient power-conversion products -- the hardware needed to convert between alternating current and direct current -- used by telecommunications companies and data center operators."
As Bloomberg reported, "Lineage’s technology helps keep power uninterrupted for cloud computing, data storage and wireless networks that support Apple (News - Alert), Inc., products such as the iPhone and iPad, Amazon Inc.’s Kindle and devices that use Google Inc.’s Android software. Applications downloaded to smartphones will surge by 60 percent a year to generate $35 billion by 2014, research firm IDC (News - Alert) estimated last month."
The company said its products reduce energy loss from AC-to-DC conversions, according to LaMonica, "and lower the cooling costs in data centers and telecom infrastructure, such as cell phone towers. Lineage Power CEO Craig Witsoe said demand for its equipment is poised to grow as more smartphones, e-books, and tablet computers connect to the Internet over 3G and 4G networks.
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David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.Edited by
Tammy Wolf
