S&T AG finalizes to focus its smart energy activities on Eastern- and Central Europe
As announced in December, S&T will focus its smart grid activities on serving its main markets Central- and Eastern Europe. To that end, S&T has acquired Networked Energy Services Corporation's (NES) shares of the Europe-based Networked Energy Services GmbH (formerly Ubitronix GmbH), which had been operating as a local European branch for NES. Also, as part of its strategy to focus on its core markets, S&T AG has sold it's 56% stake in the Silicon Valley based NES Corporation to Cedrus Enterprises Holding, an existing shareholder of the company. Collectively, these transactions will yield S&T AG a positive increase in cash flow.
NES Corporation and the S&T Group will continue to work as partners to deliver end to end Smart Energy solutions to S&T's core markets, where NES and S&T have already had customer wins in Poland, Austria, Slovakia, and Romania. While doing so, the S&T Group will concentrate on expanding its Software Smart Energy solution portfolio to include additional software and system integration services to compliment the NES industry leading solution portfolio. S&T is also expediting its development activities in this segment and plans to introduce “microGrid” management solutions later this year. These smart grids solutions are designed for use in small cities and energy service providers. S&T is planning on introducing their first solution in February 2016.
“S&T will increase their investments in smart grid technologies and continue its effort to establish this segment as an area of leadership and growth for the company. S&T is developing innovative software solutions which will offer a broad value proposition to its customers and will compliment the NES industry leading product portfolio,” explains Hannes Niederhauser, S&T's CEO, referring to the results expected from the newly optimized structure. “While doing so, S&T AG will maintain its status of being a provider of a comprehensive portfolio provider of solutions for the smart energy sector in Central and Eastern Europe.“
Smart grid is a high-growth technology market. Once the alterations planned have been completed, S&T plans on realizing a 30% rise in sales from its Smart Energy segment in financial year 2016. In total, these sales will result to EUR 70 million. The restructuring of costs is expected to enhance the profitability of the smart energy segment in 2016, in which the segment is set to earn an EBIT of nearly EUR 2 million.
About Cedrus:
Cedrus Enterprises Holding (www.cedrus.net) is a privately held holding company with a highly diversified portfolio. The primary strategic focus is largely centered on energy-related industry, technology and business & technical consulting services. Cedrus Enterprises Holding has adopted a well-defined and dynamic business model that defines its investment approach and investment selection process. The cornerstone of this approach lies in investing in key international strategic acquisitions and in entering into alliances and/or partnership arrangements with internationally recognized technology vendors and utilities. The company's long-term investment strategy includes greater focus on areas related to smart metering and smart grid solutions but remains thoroughly anchored on risk diversification. The portfolio of companies currently held are engaged in a wide range of international projects and assignments that include alternative energy; contracting and engineering services (infrastructure, commercial & residential); the design, development and implementation of IT & software solutions; the provision of electromechanical products and solutions; facility maintenance services; advanced defence & security systems implementation (infrastructure protection and highly specialized products/solutions); transportation (airport ground-handling and management); hospitality and food & beverage (hotels, restaurants, food processing, franchising and catering).
About Networked Energy Services Corporation:
Networked Energy Services Corporation (www.networkedenergy.com) is a global smart energy leader in the worldwide transformation of the electricity grid into an energy control network, enabling utilities to connect to their customers, offer new services and help them compete more effectively, through solutions which can help reduce operating costs, provide expanded services and help energy end users to become active participants in energy conservation. The company was formed as a result of the spinoff of Echelon Corporation's Grid Modernization Division in October 2014. NES has its headquarters in the US, with design and R&D Centers located in Silicon Valley/California, Fargo/North Dakota, Gdansk Poland, and sales offices throughout the world. Networked Energy Services' solution, based on Open Smart Grid Protocol (OSGP), is used in more than 36 million smart end points by utilities around the world. You can find out more information about NES and its products, including smart meters, data concentrator nodes, and head-end software, at http://www.networkedenergy.com.