By Lisa Kerner
Charlotte, N.C., Feb. 26 - Itron, Inc. entered into an agreement to acquire all of the stock and convertible bonds of Actaris Metering Systems for $1.6 billion, including debt, in a transaction expected to close in the second quarter of 2007.
The acquisition will be funded by about $1.1 billion of fully committed senior secured debt facilities, the net proceeds of the private placement of roughly $235 million of common stock and cash on hand.
"This acquisition, which will more than double Itron's annual revenues, brings together two industry leaders and reunites two former Schlumberger divisions," Itron chairman and chief executive officer LeRoy Nosbaum said in a company news release.
"We have been looking for an investment that would allow Itron to bring its superior [automated meter reading] technology and systems expertise to customers outside of North America. Our acquisition of Actaris is the perfect choice to combine their quality meters and established distribution channels with our expertise, which will ultimately bring more value to customers around the globe."
Luxembourg-based Actaris designs and manufactures electricity, gas and water meters and associated systems.
Itron is an energy and water industry technology provider located in Liberty Lake, Wash.
| Acquirer: | Itron, Inc.
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| Target: | Actaris Metering Systems
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| Transaction value: | $1.6 billion
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| Announcement date: | Feb. 25
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| Expected closing: | Second quarter of 2007
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| Stock price for acquirer: | Nasdaq: ITRI; $63.81 on Feb. 23
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