Rueil-Malmaison (France), September 9th, 2003 - To boost its position in the field of Power Line Communication , Schneider Electric has acquired Ilevo, a company based in Karlstad (Sweden), a former spin-off from Ericsson, previously under the majority control of Itact, a venture capital corporation specializing in avant-garde technology, based in Stockholm, and other shareholders including Swedish electricity distribution corporations.
An acquisition in line with Schneider Electric strategy
"With the acquisition of 100% control of the Swedish company, Ilevo, Schneider Electric is pursuing its dynamic innovation approach. The acquisition not only brings in the most outstanding offering currently on the market but also a powerful mechanism for developing products, enabling us to envisage the evolution of future product ranges right away," explained Jean Kieffer, Energy Market and Infrastructure Director.
Creation of a powerful player
As a result of this acquisition, Schneider Electric has just created a new entity, "Schneider Electric Powerline Communications" (SEPC), with the aim of quickly becoming the reference player in this field.
Creation of this entity gives the group a unit complementary to Easyplug (a joint venture owned 50/50 with Thomson Multimédia), which is continuing its work to develop PLC multimedia offerings for the general public.
The new company, based on Ilevo's existing resources, has a combination of acknowledged experts in PLC, telecommunications and electricity distribution. It is based at Karlstad (Sweden) and Grenoble (France).
To quote Mattias Astrom, the CEO of Schneider Electric Powerline Communications (SEPC), “Our aim is to design, produce and sell PLC products, at the same time offering the necessary services and support to all the players involved (local authorities, electricity distribution corporations, telecommunications operators and Internet service providers, etc.). Our objective is to have 500,000 connection points installed by 2006.”
After a successful experimentation phase, based primarily on the implementation of various pilot projects, Schneider Electric has moved into the commercial deployment stage. The conditions for swift market development have now been achieved and there are real opportunities for growth, on European markets in particular.
The maturity of Power Line Communication technology has encouraged the emergence of viable commercial solutions well-received by telecommunications operators. Changes in regulations are progressively fostering use of this technology, while demand from customers is increasing due to growing data exchange and communication requirements.
“Since ITACT’s first engagement at the founding of ILEVO in May 2000 we have supported the company because we were sure that enabling high-speed networking over the conventional power grid would open up significant business opportunities all over the world. The acquisition of Ilevo by Schneider Electric proves this and provides Ilevo with an excellent launching pad,” says Fredric Gunnarson, CEO and Partner of ITACT.
Founded in 1999, ITACT currently manages the €32 million V2 Fund.
More information can be found at:
Contact: Fredric Gunnarson, ITACT CEO & Partner, +46-70-953 44 99
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Schneider Electric, the world's Power & Control specialist with leading mondial brands such as Merlin Gerin, Square D and Telemecanique, offers a comprehensive range of products and services for the following markets: residential, buildings, industry and energy and infrastructure.
Schneider Electric's 74 800 employees generated sales of EUR 9.1 billion in 2002 through 13,000 sales outlets in 130 countries.