Toshiba has signed a definitive sales agreement to acquire Landis+Gyr, a provider of energy management solutions for $2.3bn in cash.

The acquisition is expected to close in the third quarter of this year, subject to regulatory approvals.

The acquisition will broaden Toshiba’s portfolio as it taps opportunities in the global smart grid network, while Landis+Gyr will gain additional capital strength.

Landis+Gyr’s major shareholders include Allianz Capital Partners, Australian Capital Equity, DLJ Merchant Banking Partners, Dubai International Capital, Marinya Holdings, Sir Douglas Myers, Sir Anthony O’Reilly, Propel Investments and Sofina.

Toshiba corporate executive vice president Hideo Kitamura said that, together with Landis+Gyr, the firm will accelerate the development of its combined product and service portfolio to provide sophisticated Smart Community solutions in the global market.