Acquisition expands communications offering

ABB is to acquire Tropos Networks Inc., a Silicon Valley-based company that develops and markets wireless technologies and products for distribution area communication networks. The acquisition will expand ABB’s communications systems offering for customers in the power, transportation, mining and

public infrastructure sectors.

Tropos employs 55 people. The company’s wireless IP (Internet Protocol) broadband solutions focus on reliability, security and scalability, key characteristics for essential services in smart grid and other outdoor industrial applications. The Tropos portfolio extends ABB’s existing offering of communications solutions for the power distribution sector. It also reinforces ABB’s increased focus on the North American market and complements its global presence in utility and industrial communications.

As power grids and other critical infrastructure become increasingly reliant on automation, demand for cost-effective, reliable and secure communication solutions is growing. Communications play a critical role in realizing the efficiency improvements that can be achieved by automation and improved resource allocation.

“Tropos Networks’ technologies are a great fit with our own communications offering, greatly increasing our ability to supply robust and reliable private networks for use in mission-critical applications,” said Jens Birgersson, head of ABB’s Network Management business, a part of the company’s Power Systems division. “With a strong presence in North America, this acquisition will provide ABB with additional access to US markets, where we still have considerable room to grow.”

“Customers will benefit from the combination of Tropos’ wireless communications networks and ABB’s automation solutions and system design and implementation services,” said Tom Ayers, President and CEO of Tropos Networks. “For Tropos, joining ABB will accelerate our ability to reach customers in new geographies and industrial sectors.”

ABB’s comprehensive suite of communication solutions provides a strong foundation for mission-critical networks and is a key enabler for smarter grids. Solutions for fixed-wire, narrowband, broadband and wireless connections play an important role in ensuring the reliability of modern power systems. The transaction is expected to close in the third quarter of 2012.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 145,000 people.