Tokyo, February 23, 2012 — Hitachi, Ltd. and Silver Spring Networks, Inc. formed a strategic alliance under which Hitachi and Silver Spring propose to offer integrated solutions to power utilities and power users in the global smart grid sector.
The strategic alliance will strengthen the two companies' solutions and expand their businesses around the world. Their products and solutions will focus on improving efficiency in the power and information fields, leveraging the existing strengths and market leadership of both companies.
As part of the alliance, Hitachi will acquire convertible bonds with stock acquisition rights to be issued by Silver Spring. The two companies will jointly undertake R&D for new products and solutions for the smart grid.
Hitachi and Silver Spring have been working together on the Japan-U.S. collaborative smart grid demonstration project on the Hawaiian island of Maui since the spring of 2011. This alliance will strengthen and expand that relationship.
Hitachi is accelerating the global development of its Social Innovation Business, which provides social infrastructure underpinned by advanced information technologies, with a focus on three management themes: global, the environment and fusion.
The company boasts an extensive track record in providing a rich line-up of products and solutions. These extend from power and energy equipment related to electricity generation, transmission, conversion and distribution, systems for stabilizing power grids and systems for monitoring and controlling electricity distribution grids to front-end systems for collecting meter information; back-office systems such as facility management and billing systems.
Hitachi also boasts technologies for optimally adjusting the electricity supply-demand balance by utilizing its information technologies. Hitachi is focusing on expanding smart city business, leveraging its ability to design and construct social infrastructure systems that fuse these information and control technologies.