A joint venture backed by Hong Kong tycoon Li Ka-shing has agreed to acquire German metering and energy management group Ista International.
The price wasn’t disclosed, but sources told the Wall Street Journal that the deal values Ista at about US$5.3 billion, including debt.
Cheung Kong Property and CK Infrastructure, controlled by Li, teamed up with another entity to buy the German smart-metering company from private-equity firm CVC Capital Partners.
By acquiring Ista, which is based in Essen, CK Infrastructure gains exposure to the expected growth in demand for smart metering to help EU countries meet their energy efficiency targets.
The joint venture can also take advantage of its presence and knowledge of the Asian market to further expand Ista’s operations in Asia where it already has a presence in China, the Journal noted.
Last year, Ista generated revenue of 850.4 million euro, up 4.9 percent from the previous year.
CVC acquired a majority stake in Ista in 2013 from Charterhouse Capital Partners, another UK-based buyout firm, in a deal that valued the company then at about 3 billion euro including debt.
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