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AMNYTT #4
2012
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ARC Insights, Page 2
AMNYTT #4
What is it about metering that makes suppliers tend to be smaller, inde-
JULY 26, 2012
M&A Moves Smart Meter Market
pendent firms? Why doesn't it make obvious sense to consolidate metering
within the portfolios of major smart grid solutions suppliers such as ABB
and Siemens? Why are metering companies so distinct? ARC Advisory
By Harry Forbes
Group believes there are a number of reasons for this industry structure.
Keywords
Meter Suppliers Are High-Volume Manufacturers
Smart Grid, Smart Meters, AMI, Mergers and Acquisitions
First, meter manufacturers are fundamentally high-volume industrial de-
Yet More Smart Grid Mergers and Acquisitions
The tide of smart grid-related mergers and acquisitions continues unabated.
vice manufacturing operations. In the era of smart meters these devices
have become far more complex, making them challenging to manufacture,
service, and support in an economical manner. Smart meters require twoway communication networks and solid network security. These competences are new and orthogonal to the traditional crit-
On June 12 of this year shares of meter supplier Elster (NYSE:ELT) rose 12
ical-to-quality factors in meter manufacturing.
percent on buyout speculation. On June 29 Elster announced that it was
The second acquisition of a major
supplier of smart meter ́ݥѡ