Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan (INCJ)

Landis+Gyr to become “independent growth platform” within the Toshiba Group for smart meters and smart grid

by Gerhard Fasol

Landis+Gyr acquired by Toshiba (60%) and Innovation Network Corporation of Japan (40%) for US$ 2.3 billion

Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan: this acquisition was finalized with a shareholder’s and share purchase agreement between Toshiba and INCJ and Landis+Gyr, announced on 25 July 2011.

Initially, on 19 May 2011, Toshiba had announced the 100% acquisition of Landis+Gyr by Toshiba alone for US$ 2.3 billion including assumption of debt. Apparently, The Innovation Network Corporation of Japan entered this partnership sometime between May and July 2011 as an additional investor.

Toshiba established a Special Purpose Vehicle (SPV):

  • Toshiba invests: US$ 1.02 billion corresponding to 60% of equity
  • INCJ invests: US$ 0.680 billion corresponding to 40% of equity

In addition, Toshiba assumed Landis+Gyr’s net debt of US$ 600 million, thus the total cost to Toshiba is:

  • 60% equity in SPV: US$ 1.02 billion
  • assumption of Landis+Gyr net debt: US$ 0.6 billion
  • total acquisition cost to Toshiba: US$ 1.62 billion

The Innovation Network Corporation of Japan (INCJ) invested US$ 680 million into this SVP, acquiring 40% of the SVP’s equity.

Landis+Gyr – “manage energy better”

Landis+Gyr was founded in 1896 as Elektrotechnisches Institut Theiler & Co in Zug, Switzerland by Richard Theiler. In 1904, Richard Theiler appointed the engineer Heinrich Landis as his successor. Heinrich Landis partnered with Dr. Karl Heinrich Gyr in 1905, and the company changed its name to Landis & Gyr in 1905.

In 1998 Landis & Gyr was acquired by Siemens, and then again spun out in 2002 with the new version of the company name: Landis+Gyr.

Landis+Gyr produces smart meters, smart grid equipment and related technology and services, with the mission to “manage energy better”.

Landis+Gyr’s customers are mainly energy, gas and electricity utility companies throughout the world for their smart meter and smart grid networks.

The Innovation Network Corporation of Japan (INCJ)

The Innovation Network Corporation of Japan (INCJ) is an investment fund established on 27 July 2009 as a public-private partnership between the Japanese Government and 26 major Japanese corporations temporarily for 15 years.

Investment capability:

  • Capitalization: YEN 300 billion (=approx US$ 3 billion)
    • Japanese Government: YEN 286 billion
    • 26 corporations: YEN 14 billion
  • Japanese Government guarantees: YEN 1800 billion (=approx US$ 18 billion)
  • Total investment capability: YEN 2100 billion (=approx US$ 21 billion)

INCJ has made a range of investments, the largest investment (YEN 200 billion = approx. US$ 2 billion) is in Japan Display.

In addition to the Japanese Government, 26 investors (total YEN 14 billion) are:

  • Asahi Kasei Corporation
  • Canon Inc.
  • Osaka Gas Co., Ltd.
  • Sharp Corporation
  • The Shoko Chukin Bank, Ltd.
  • Sumitomo Chemical Co., Ltd.
  • Sumitomo Corporation
  • Sumitomo Electric Industries, Ltd.
  • Sony Corporation
  • Takeda Pharmaceutical Company Limited
  • Toshiba Corporation
  • JGC Corporation
  • Development Bank of Japan Inc.
  • Panasonic Corporation
  • East Japan Railway Company
  • Hitachi, Ltd.
  • Marubeni Corporation
  • Mizuho Bank, Ltd.
  • Sumitomo Mitsui Banking Corporation
  • Mitsubishi Chemical Holdings Corporation
  • Mitsubishi Heavy Industries, Ltd.
  • Mitsubishi Corporation
  • The Bank of Tokyo-Mitsubishi UFJ, Ltd.
  • GE Japan Corporation
  • JX Nippon Oil & Energy Corporation


Toshiba is one of Japan’s eight top electronics group, which we analyze in our report “Japan’s electronics industries: mono zukuri

Japan electronics industries – mono zukuri.

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