Buffett Subsidiary Invests $22.5 Million in Israeli Energy-Saving Company
IES Holding, a subsidiary of American billionaire Warren Buffett’s Berkshire Hathaway Inc., and General Electric Co. invested $22.5 million in Israeli energy savings solutions company eVolution Networks, it was announced Tuesday.
The company provides energy-management solutions and services for Mobile Network Operators (MNOs). It will use the funding to expand into new global markets and promote its products to new industries.
“Energy costs are a huge problem for mobile operators,” Roy Morad, CEO of eVolution Networks, said in a statement. “Operators are constantly forced to expand their network to support the growing data demand from subscribers and the Internet of Things. However, the way networks are designed today doesn’t allow operators to wisely ‘right size’ their energy use according to live traffic demand. eVolution Networks’ Smart Energy Solution eliminates this problem.”
The company’s Smart Energy Solution is a software-based service that analyzes a mobile network’s needs and manages the network’s resources according to real-time demand from subscribers. The approach has been applied by Tier-1 operators such as Telefonica Group and has proven to save millions of dollars annually on energy bills, the company said in its statement. The solution has also reduced up to 35 percent of the annual energy consumption of mobile operators.
Bill Fehrman, president of IES Holding, said eVolution Networks “is poised for tremendous growth as more customers and business partners realize the benefits provided by the technology.”
Warren Buffett himself has long been a champion of investment in Israel.
In a previous interview with Israeli daily Yedioth Ahronoth, the iconic investor said that Israel is the “most promising investment hub” outside of the U.S.
“I’m not Jewish, but Israel reminds me of the United States after its birth,” he also told the publication. “The determination, motivation, intelligence and initiative of its people are remarkable and extraordinary. I’m a big believer in Israel’s economy.”