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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (44675)	9/29/2011 12:24:50 PM
From: E_K_S	Read Replies (1) \| Respond to of 78744

Hi Robert - Re: ABB Ltd. (ABB) - Smart Grid Technology Researching this company, I was surprised to see recent acquisitions into network management and "smart grid" software technologies. These types of "Services" (ie software license fees, re-occurring network IT management, network design & consulting) typically generate excellent FCF and is a high margin business. ABB acquires Ventyx to strengthen its network management business Acquisition positions ABB as a key player in energy management software and smart grids Zurich, Switzerland, May 5, 2010 abb.com "... ABB, the global power and automation technology group, has agreed to acquire Ventyx for more than $1 billion from Vista Equity Partners to become a leading provider of software solutions for managing energy networks. Smart Grid Companies Acquisition of Mincom strengthens ABB's smart grid portfolio May 9, 2011 smartgridnews.com "...Global power and automation technology group ABB is set to acquire Mincom, a Brisbane, Australia-based enterprise software and services provider to asset-intensive industries such as natural resources, energy and defense...." Smart Grid Strategy ABB continues smart grid acquisition spree May 12, 2011 smartgridnews.com "...Power and automation technology group ABB has made another investment in data center power infrastructure technology by purchasing a controlling interest in Validus DC Systems, a U.S.-based company that provides direct current (DC) power equipment for energy-draining data centers. DC power offers a lot of advantages for data centers, which can consume up to 100 times more electricity than an office building of similar size. The technology is much more energy efficient than traditional AC for electrical distribution: It can bump energy efficiency by 10 to 20% compared to AC systems by cutting power conversion losses....". ----------------------------------------------------------------------------------------------- It looks like the company plans to marry many of the efficiencies in DC motors and DC Power conversion with "Smart Grid" distributed systems. Direct applications are found in energy intensive Data Centers and other industrial applications. Their recent investments total several Billion of dollars so it appears that management is driven to develop this emerging market opportunity. EKS