Yaskawa Electric Corporation announced that it has signed a definitive agreement to acquire The Switch, a supplier of megawatt-class permanent magnet generator and full-power converter packages for wind power and other renewable energy applications. This acquisition will support both companies’ strategic objectives and strengthen their international presence. The estimated schedule for closing the deal is within a few weeks.
The Japan-based Yaskawa System Engineering Division has been focusing on growing its market share in renewable, marine and industrial applications over the past few years. In fall 2013, the two companies entered a strategic collaboration agreement whereby Yaskawa gained access to The Switch’s proven capability in megawatt-class power generation and The Switch was able to develop its presence in Japan.
“This acquisition is a natural next step forward from our initial strategic collaboration,” said Hiroyuki Ougi, Yaskawa’s corporate senior vice president, general manager, System Engineering Division. “Over the months, we have learned more about our strengths and now understand better how to leverage our synergies. Now we can both gain access to new global markets with our wider range of innovative products.”
The product portfolios of The Switch and Yaskawa complement each other well for applications in renewables, marine and industry. Yaskawa’s global network will be used to promote The Switch’s products in wind power, marine and industrial applications.
“From our customers’ point of view, this acquisition ensures global availability of The Switch offering,” said Jukka-Pekka Mäkinen, president and CEO of The Switch. “Yaskawa is an industrial company that understands our strengths and shares our strategic views. With close cooperation with Yaskawa group we can further extend our offering and can serve better our customers in a broader range of wind and marine applications as well as numerous other industrial applications.”
Yaskawa with its strong expertise in inverter technology is an ideal partner for The Switch. The Switch brand will continue as its own entity for selected markets and applications. Given the ongoing woes in the renewable energy markets, the acquisition by Yaskawa will give The Switch the firm foundation and power boost needed to enable it to continue to move forward along its fast-track path of advancing the world with electrical drive trains.
Yaskawa Electric Corporation
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