FTC Clears Itron’s Acquisition of Silver Spring Networks

In September 2017, Itron, Inc., the world’s leading provider of smart metering, data collection and utility software systems with nearly 8,000 utilities worldwide relying on its technology, entered into an agreement to acquire Silver Spring Networks. Silver Spring Networks is a leading smart grid solution company that provides the hardware, software and services that allow utilities to deploy and run multiple advanced solutions to achieve operational efficiencies, including smart metering, demand response, and distribution automation. The transaction is valued at approximately $830 million. In December 2017, the Federal Trade Commission (FTC) unconditionally approved the merger without issuing a Second Request. A Compass Lexecon team led by Jonathan Orszag and Guillermo Israilevich worked closely with Craig A. Waldman and Peter A. Julian of Jones Day, and Joanne C. Lewers of Drinker Biddle & Reath LLP to analyze the competitive effects of the proposed acquisition. Compass Lexecon analyzed bid data, company documents and sales data from third-party sources. Compass Lexecon economists concluded that there is robust competition in the relevant utility segments such that numerous well-funded network and smart meter providers compete head-to-head with the merging parties, before taking into account the synergies that would arise from the parties’ complementary assets and services. The Compass Lexecon team in our Washington, DC office included Michael Matelis, Piyal Hyder and Sahdia Khan.