Cisco recently announced that it intends to acquire Arch Rock Corporation, a San Francisco-based company that has developed Internet Protocol (IP)-based wireless network technology for smart-grid applications. Financial terms of the transaction were not disclosed. The acquisition is subject to various standard closing conditions and is expected to be complete in the second half of calendar year 2010. Upon the close of the acquisition, the Arch Rock team will become part of Cisco's Smart Grid business unit. New Enterprise Associates, Shasta Ventures, and Intel Capital are investors in Arch Rock.
Arch Rock's technology is designed to enable utilities to connect smart meters and other distributed intelligent devices over a scalable, highly secure, multi-way wireless mesh network. Cisco said that this acquisition complements the strategic alliance between Itron and Cisco (announced earlier this month) to develop solutions that enhance smart-metering technology.
"Arch Rock's wireless mesh technology enhances Cisco's IP-based, end-to-end smart-grid offerings," said Laura Ipsen, senior vice president and general manager of Cisco's Smart Grid business unit. "This acquisition further positions Cisco as a strategic partner to utilities working to better manage power supply and demand, improve the security and reliability of energy delivery, and optimize operational costs."