General Electric Company (GE) And Berkshire Hathaway Inc. (BRK.A) Invest $22.5 Million In eVolution Networks
General Electric Company (NYSE:GE) and Berkshire Hathaway Inc. (NYSE:BRK.A) provided $22.5 million in financial backing to eVolution Networks. It was not immediately clear how much each company contributed. The fresh fund is expected to support eVolution’s expansion into new regions and market categories. eVolution provides energy-saving solutions.
General Electric Company (NYSE:GE) made its investment in eVolution through its venture arm, known as GE Ventures. On the other hand, Berkshire invested in the Israeli energy management company through its unit known as IES Holding. The companies together gave $22.5 million to eVolution through Series B funding. However, neither the funders nor eVolution could disclose how much each backer contributed in the funding.
On the right track
Instead of providing details about the amount of money given to eVolution, IES Holding’s president, Bill Fehrman, only stated that eVolution is on track for tremendous growth. The reason eVolution is well-positioned for exciting growth is that more customers are beginning to realize the value of its energy management technology.
Cutting energy consumption by 35%
eVolution provides software and services that help with reduction of energy consumption, especially for mobile operators. The company claims that its energy management systems can cut energy usage by over 35%. Telefonica S.A. (ADR) (NYSE:TEF) is one of the major carriers that have deployed eVolution’s energy management systems in its base stations.
The funding from General Electric Company (NYSE:GE) and Berkshire will enable eVolution to expand into new market categories, such as datacenter energy management. The financial support will also enable eVolution to enter new geographical markets, as it helps companies lower their carbon emission and reduce energy bills.
Dealing with traffic demand and energy challenge
According to eVolution’s CEO, Roy Morad, the growing demand for data is forcing operators to expand their networks, yet the current design of networks doesn’t allow for more efficient energy usage. The result is higher energy cost and more problems for operators, but eVolution’s Smart Energy Solution is designed to help bring energy efficiency to telecommunication networks.
The annual energy spending by mobile operators is said to be $20 billion.
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