Japanese giant Hitachi (s HIT) and Valley smart grid network provider Silver Spring Networks are teaming up over product development as well as a potential investment. An announcement from the companies this morning states that “Hitachi will acquire convertible bonds with stock acquisition rights to be issued by Silver Spring,” and the companies say they will work on R&D for new products for the smart grid.
Hitachi is a massive conglomerate with hundreds of businesses, including quite a few in the smart grid like energy management systems, transformers, battery storage technology, and lighting. Hitachi is also working on the Hawaii smart grid demonstration project with a variety of other companies.
Silver Spring, which filed for an IPO last summer, has yet to go public and has been turning to large companies for partnerships and investment. In December the company raised $24 million from storage and IT giant EMC. Will Silver Spring end up being sold off to one of these big players?