PLAINVILLE, CT and PLANO, TEXAS—March 2, 2011—GE (NYSE: GE) today announced it has completed the acquisition of privately-held Lineage Power Holdings, Inc., from The Gores Group, LLC. Lineage Power is a leading global provider of high-efficiency power conversion infrastructure technology and services for the telecommunications and datacenter industries. The acquisition positions GE Energy technology to be deployed in the $20 billion per year power conversion space, where the demand for reliable, high quality power is driven by the growth in cloud computing and mobile internet voice, video and data applications.
“The acquisition of Lineage Power provides a foundation for GE to build a platform to help the global technology sector optimize energy efficiency, with end-to-end solutions for datacenters and telecom facilities and the networking, computing and data storage devices within them, ” said Luis Manuel Ramírez, president and CEO, GE Energy, Industrial Solutions. “GE values the Lineage Power employees who will be joining us as part of this acquisition. Their expertise was an important factor in the decision to acquire this business.”
Craig Witsoe, president of Lineage Power, said, “Joining GE will enhance our company’s resources to provide best-in-class energy technologies to our telecommunications and data communications customers. Our leadership in high-efficiency power conversion solutions has positioned us to serve the explosive growth in mobile internet demand driven by 3G and 4G/LTE wireless networks that enable the Amazon® Kindle™, Apple® iPhone® and iPad™, Google® Android™ smart phones and other mobile devices. We also are bringing to GE exciting new solutions for high-efficiency datacenter architecture, data storage and cloud computing. Rooted in our Bell Labs heritage, our employees have built an innovative and customer-centric company. We look forward to building upon our foundation of technology leadership and strong, long-term customer relationships with GE.”
GE also expects collaboration between the research and development teams to address joint opportunities in the battery, datacenter, electric vehicle and renewable energy segments.
Lineage Power had revenues of approximately $450 million in 2010. Lineage Power is headquartered in Plano, Texas, and has nearly 2,300 employees, with manufacturing operations in China, Mexico and India.
The deal is the latest in a series of announcements that will expand GE’s $40 billion energy portfolio of solutions for customers in vital industries. In February 2011, GE announced the completion of its acquisition of Dresser Inc., a Dallas-based energy infrastructure company.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.
GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With more than 90,000 global employees and 2010 revenues of $38 billion, GE Energy www.ge.com/energy is one of the world’s leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy—GE Power & Water, GE Energy Services and GE Oil & Gas—work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
About Lineage Power
Lineage Power, a Gores Group company, traces our nearly 100 year heritage of innovation to Bell Labs and Western Electric. We deliver reliable and intelligent power conversion solutions for cloud computing and mobile internet infrastructure with energy-efficient AC-DC power supplies, DC-DC circuit board mounted power modules, telecom energy systems, DC datacenters and custom power products backed by local field expertise in 25+ locations worldwide. Designed for decades of non-stop operation, the high-availability DC power conversion solutions enable voice, video and data communications while assuring investment protection, total system efficiency and significantly reduced total cost of ownership. Our customers include leading U.S. telecom service providers, such as AT&T, Verizon Wireless and Verizon, and leading global OEMs, such as Alcatel-Lucent, Cisco, Ericsson, Hewlett Packard, Huawei, Juniper Networks and Oracle. More information about Lineage hardware, software, services and training is available at www.lineagepower.com.
About The Gores Group, LLC
The Gores Group LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm’s current private equity funds have committed equity capital of over $3 billion. Headquartered in Los Angeles, The Gores Group, LLC maintains offices in Boulder, Co., and London. For more information, please visit www.gores.com.