Echelon Corp. (NASDAQ: ELON) said that it has signed a definitive agreement to sell its Grid operations to S&T AG, a publicly traded European IT systems provider with an existing focus on smart energy products and services.
The closing is conditioned upon regulatory approvals. The companies expect the deal to close by the end of the year.
“This transaction will allow us to focus fully on becoming a key enabler in the transition to the Industrial Internet of Things, with the confidence of knowing that SandT will continue to operate our grid business and support our customers, partners and sales pipeline,” said Ron Sege, chairman and CEO, Echelon Corp.
Under the terms of the agreement, Echelon will receive approximately USD5m in upfront consideration, dependent in part on the value of net assets at closing. The acquisition is anticipated to be accomplished via a subsidiary established by SandT.
S&T AG, with headquarters in Linz, Austria, is listed on the prime standard segment of the Frankfurt Stock Exchange.
Echelon, a pioneer in developing open-standard control networking platforms, delivers all the elements necessary to design, install, monitor and control industrial-strength ´communities of devices´ within the lighting, building automation, grid, Internet of Things, ´maker´ and other markets worldwide. Its website is at www.echelon.com.