The acquisition is designed to support both Yaskawa's and The Switch's strategic objectives and strengthen their international presence. In late 2013, the two companies entered a strategic collaboration agreement whereby Yaskawa gained access to The Switch’s proven capability in megawatt-class power generation. As a result, The Switch was able to develop its presence in Japan.
“This acquisition is a natural next step forward from our initial strategic collaboration," said Hiroyuki Ougi, Yaskawa’s corporate senior vice president, general manager, system engineering division. "Over the [past few months], we have learned more about our strengths and now understand better how to leverage our synergies. Now we can both gain access to new global markets with our wider range of innovative products.”
The product portfolios of The Switch -- a supplier of megawatt-class permanent magnet generator and full-power converter packages for wind power and other renewable energy applications -- and Yaskawa complement each other well for applications in renewables, marine and industry. Permanent magnet (PM) machines and low-voltage converters from The Switch range from 500 kW to 8.0+ MW, whereas Yaskawa offers medium-voltage converters that extend the offering to large wind turbines and other applications. Yaskawa’s global network will be used to promote The Switch’s products in wind power, marine and industrial applications.
“From our customers’ point of view, this acquisition ensures global availability of The Switch offering," said Jukka-Pekka Mäkinen, president and CEO of The Switch. "Yaskawa is an industrial company that understands our strengths and shares our strategic views. With close cooperation with Yaskawa group, we can further extend our offering and better serve our customers in a broader range of wind and marine applications, as well as numerous other industrial applications."
The estimated schedule for closing the deal is within a few weeks.