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, but now General Electric bought Lineage Power Holdings for a slightly lower amount - “only” $ 520 million. GE management claims that this purchase will allow the company to significantly strengthen and complement its position in the energy conversion device manufacturing sector. New solutions in the field of power electronics are what the company will turn to right after the completion of the transaction, in any case, according to GE management.
The purchase of Lineage Power Holdings, according to experts, gives hope for the emergence of new, effective devices for telecommunications companies and data centers. Until now, Lineage Power Holdings has been producing power electronics for workstations, servers, and network equipment in general. It is worth noting separately that this manufactured equipment has been optimized to work with alternative energy sources, including fuel cells, wind generators and solar cells.
The equipment manufactured by Lineage Power Holdings was quite energy efficient, allowing it to reduce energy losses during the conversion of direct current to alternating current and vice versa. Lineage Power Holdings also produced portable solutions, including products for smartphones, e-readers, and tablet PCs.
But GE is currently most interested in Lineage Power Holdings solutions for data centers. Now a lot more data centers are being built and modernized, and it is clear that investing in any area related to the creation of data centers will pay off handsomely. It seems that the company General Electric really did not fail in this case.
Interestingly, immediately after the announcement of GE's purchase, its shares fell in price by 0.4%. Maybe this is an accident, or maybe on the stock exchange they believe that this transaction will not benefit GE. Be that as it may, over time we will surely see new devices from the tandem of GE and Lineage Power Holdings.