Itron 'Feeds the Meter' with $100 Million SmartSynch Acquisition

Cellular technology for the smart grid got a major endorsement this week, both in principle and in principal.

Liberty Lake, Washington-based meter manufacturer Itron, Inc.—already a “household word” in intelligent automation worldwide—announced on February 15 that it will pay $100 million to acquire SmartSynch, Inc., a privately owned cellular network provider to the utility industry. The parties expect the transaction to close during the second quarter of 2012. 

Jackson, Mississippi-based Smart Synch describes itself as “a provider of standards-based, IP-enabled smart grid solutions using cellular networks that already exist.” Founded in 1998, the company has strategic relationships with cellular partners AT&T, Rogers, T-Mobile, Sprint, Verizon and C Spire; and boasts of more than 130 utility customers— including 9 of the top 10 utilities in North America. 

SmartSynch and Itron have partnered for more than a decade, and have a number of joint customers, including San Diego Gas & Electric, First Energy, and West Penn Power. Their related technologies can be used to provide a solution in areas where RF (radio frequency) mesh networks are not available, or are cost-prohibitive.

“This is a great day for Itron, for SmartSynch, and for our existing and future customers,” said Itron President and CEO LeRoy Nosbaum, in a video posted on YouTube “Together we will be able to deliver an even stronger value proposition. [This acquisition] underscores our focus on expanding our business through aggressive investment in research and development, and strategic deals that strengthen our position in the market.”

Itron anticipates that the acquisition will provide it with an additional  $50 million in annual revenues.Itron was advised on the transaction by Centerview Partners LLC. SmartSynch was advised by Stephens Inc.