ABB to acquire Tropos Networks

ABB-Tropos acquisition expands Smart Grid communications with wireless IP broadband for utilities, bolstering power distribution, mission-critical networks, and North American market reach through secure, scalable, and reliable automation for outdoor industrial applications.

Zurich, Switzerland – ABB, a power and automation technology group, has agreed to acquire Tropos Networks Inc., a Silicon Valley-based company that develops and markets wireless technologies and products for distribution area communication networks. The acquisition will expand ABB's communications systems offering for customers in the power, transportation, mining and public infrastructure sectors.

Based in Sunnyvale, California, Tropos employs 55 people. The company's wireless IP Internet Protocol broadband solutions focus on reliability, security and scalability, key characteristics for essential services in Smart Grid and other outdoor industrial applications.

The Tropos portfolio extends ABB’s existing offering of communications solutions for the power distribution sector. It also reinforces ABB's increased focus on the North American market, as seen with the Baldor acquisition announcement, and complements its global presence in utility and industrial communications.

As power grids and other critical infrastructure become increasingly reliant on automation, demand for cost-effective, reliable and secure communication solutions, including fibre-optic networks, is growing. Communications play a critical role in realizing the efficiency improvements that can be achieved by automation and improved resource allocation.

"With a strong presence in North America, this acquisition will provide ABB with additional access to US markets, where we still have considerable room to grow." said Jens Birgersson, head of ABB's Network Management business, a part of the company’s Power Systems division.

ABB's suite of communication solutions provides a foundation for mission-critical networks and is a key enabler for smarter grids. Solutions for fixed-wire, narrowband, broadband, such as the FTTH collaboration, and wireless connections play an important role in ensuring the reliability of modern power systems.

The transaction is expected to close in the third quarter of 2012, aligning with past moves like the IKS and Baldor acquisitions that expanded ABB's industrial footprint.

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