Smart meter firm Sensus explores sale

Reuters

U.S. smart metering company Sensus (Raleigh, N.C., U.S.A.) is exploring a potential sale of the company and has hired bankers to advise the company on a deal that could potentially cost up to $1 billion, people familiar with the matter said.

Privately held Sensus, which makes smart meters, software and communication systems for the electric, gas, and water industries, is preparing to launch a sale and is being advised by financial service company Credit Suisse (Zurich, Switzerland) on the process, these sources said. 

The company has about $100 million in earnings before interest, tax, depreciation and amortization (EBITDA). It could be valued at about 8 to 10 times EBITDA in a potential deal, two of the sources said.

The company is expected to draw interest from trade buyers looking to expand in the smart grid market as well as private equity firms that would grow the business and eventually take it public, according to the sources.

Representatives for Sensus and Credit Suisse declined to comment.

In May, Japanese electronics manufacturer Toshiba Corp (Tokyo, Japan) struck a $2.3 billion deal to buy Swiss-based meter maker Landis+Gyr (Zug, Switzerland) in a bid to move into the smart grid market, beating out several strategic and private equity bidders. Credit Suisse advised Landis+Gyr on the sale along with Lazard Ltd (New York).

Smart meter makers such as Sensus and Landis+Gyr have seen strong growth as countries around the globe tighten regulations on energy to boost efficiency and use of renewable sources to cope with increasing demand and rising costs for energy and water.

Sensus has about 3,600 employees and had $865 million in sales last year.

Related Articles

Sensus defines the smart grid for water

Smart Meter Manufacturers Association of America formed by industry suppliers

ArticleTools

Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

 

Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...