Bosch Energy, the German-based energy company behind the gas range and gas pipelines that have become iconic to the Bosch brand, has agreed to buy Easycut, a technology company based in Austin, Texas.
The deal values Easycut at $4.5 billion, which would make the company one of the largest acquisition deals in Bosch history, according to sources familiar with the transaction.
Bosch will retain a 20% stake in Easycut and a 25% stake each in Bosches gas pipeline network, according a statement from Bosch.
“This transaction is a reflection of our long-term vision to be a leader in the global gas market, including our partnership with Easycut,” Bosch Chief Executive Officer Franz-Peter Heidenreich said in the statement.
“Bosch has been an important partner for many years and continues to deliver on our ambitious strategic plans.”
The deal is expected to close in the first half of 2018, according with a Bosch spokesperson.
Bosches energy network covers more than 2,000 square miles (6,000 sq km) in six states.
The company has long been a Bosches player in the energy market, building its own gas pipeline and infrastructure.
Bosche’s Bosch gas pipeline, which is designed to be used by pipelines and pipelines operated by other gas companies, has been one of its biggest success stories, accounting for over 80% of the company’s gas consumption in the U.S. Boschi has been in talks with a number of other energy companies in the past, including energy companies that have invested in gas infrastructure, sources said.
But this deal is the largest to date, with the acquisition of Easycut the biggest in Bosche history, they added.
“We are very pleased to have reached a strategic partnership with Bosch,” Boschi CEO Jens Stoltenberg said in a statement.
The transaction will bring an additional 1,000 jobs to the company, Bosch said in an email to CNN.
Stolvenberg said the combined company would invest $2.5 trillion in its energy infrastructure, including gas pipelines, transmission lines, distribution systems and infrastructure for renewable energy.
Boschan Energy’s portfolio of pipelines will increase by another 2,300 square miles to 4,400 square miles.
The purchase of Easy Cut will help the company stay focused on the energy infrastructure it already has, he added.
The acquisition comes after the company also announced a $3 billion acquisition of LNG producer Westex in April, which it said would create more than 7,500 jobs.
The announcement came as Bosch has struggled to build up its pipeline network in the face of a slowdown in natural gas production and falling prices.
The gas industry in the United States has seen an average annual decline of more than 6% since 2015, according data from the Energy Information Administration.
Boscen’s gas pipeline systems have also seen a steep drop in operating profit since 2015.
The average operating profit for the Boschen Group in the fourth quarter of 2018 was $913,827, according the company.