General Electric bought Lineage Power Holdings

It looks like this year will be rich in big deals. At the beginning of the year, Qualcomm bought Atheros for $ 3.1 billion, now General Electric bought Lineage Power Holdings for a slightly lower amount - “only” $ 520 million. The GE leadership claims that this purchase will allow the company to significantly strengthen and complement its position in the sector of energy conversion devices. New solutions in the field of power electronics are what the company will pay immediately after the completion of the transaction, in any case, the GE management says so.

Purchase Lineage Power Holdings, according to experts, gives hope for the emergence of new, effective devices for telecommunications companies and data centers. So far, Lineage Power Holdings has released power electronics for workstations, servers and network equipment in general. It should be noted separately that this equipment has been optimized for working with alternative energy sources, including fuel cells, wind turbines and solar cells.
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The equipment produced by Lineage Power Holdings was quite energy efficient, allowing it to reduce energy losses when converting direct current into alternating current and vice versa. Lineage Power Holdings also produced portable solutions, including products for smartphones, electronic readers, and tablet PCs.

But GE is currently most interested in Lineage Power Holdings solutions for data centers. Now the number of data centers is being built and modernized sufficiently more, and it is clear that investment in any sphere related to the creation of data centers will pay off a lot. It seems that the company General Electric really did not lose in this case.

Interestingly, right after GE's announcement of the purchase, its shares fell 0.4% in price. Maybe this is an accident, and maybe on the stock exchange they believe that this transaction will not benefit GE. Anyway, in the course of time we will surely see new devices from the GE tandem and Lineage Power Holdings.

Via CNET