Mitsubishi Electric will acquire US-based PCI Energy Solutions for approximately ¥220 billion and make PCI a wholly owned subsidiary. The company aims to increase revenue from its energy solutions business to approximately ¥200 billion in fiscal 2030.
Mitsubishi Electric announced that it will acquire PCI Energy Solutions, a US company specializing in software for managing electricity supply and demand. The purchase price is expected to be $1.4 billion, or approximately ¥220 billion. The acquisition will proceed with PCI becoming Mitsubishi Electric's wholly owned subsidiary.
PCI Energy Solutions has strengths in forecasting electricity demand and developing power generation plans, and its software is reportedly used for approximately 60% of power generation in the United States. Mitsubishi Electric expects demand for supply-and-demand management software to grow and aims to increase revenue from its energy solutions business to approximately ¥200 billion in fiscal 2030, roughly double its current level.
The acquisition is expected to be Mitsubishi Electric's largest ever and has been positioned as part of the growth strategy for the business following the announcement.
Further announcements will be needed regarding specific integration plans and the timing of implementation.