GE announced this week that it has struck an agreement to acquire Lineage Power Holdings from The Gores Group, providing the company with a foothold in the burgeoning market for high-efficiency power conversion systems for data centers.
GE said the deal will provide the company with leading-edge green technology to be deployed in the $20-billion-per-year power conversion market. It said that market is largely being driven by rapid data center expansion as a result of growth in cloud computing, mobile Internet and video and data applications.
“According to recent studies, there will be 1.1 billion smartphones sold globally by 2013,” Dan Heintzelman, chief executive of GE Energy Services, said in a statement. “Every new mobile device plugs into an infrastructure that requires an ever-increasing amount of high-quality power. A globally networked planet needs a lot of power to keep spinning. Customers want efficient, reliable means to manage that power.”
The deal is the latest in a series of announcements GE has made to expand its $40 billion energy business. In October of 2010, it announced the signing of an agreement to acquire Dresser Inc., a Dallas-based energy infrastructure company. In December it announced its intention to make an offer for Wellstream Holdings PLC, a British oil pipe manufacturer.
GE also announced recently it had acquired Remote Energy Monitoring, a British smart meter specialist, for an undisclosed sum.
Lineage Power, which is headquartered in Plano, Texas, had about $450 million in revenues in 2010. It has about 2,300 employees.
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