The Swiss industrial power and automation giant ABB is buying the US electrical-infrastructure player Thomas & Betts for about US$3.9bn in cash. The buyer said the deal would make it a major player in the US market for low-voltage products – the world’s largest low-voltage market, according to ABB.

Both companies sell electrical infrastructure products into the data center space.

Zurich-based ABB said its low-voltage protection, control and measurement products complemented Thomas & Betts’ electrical components. The buyer expects the acquisition to bring $200m in annual synergies by 2016.

ABB CEO Joe Hogan said Thomas & Betts had strong brands and excellent distribution channels in the largest low-voltage market in the world.

“Because our products are complementary, we’ll go to market with one of the broadest offerings in the industry,” he said. “That creates strong growth opportunities for both ABB and Thomas & Betts, and gives customers and distributors one-stop access to one of the widest ranges of low-voltage products.”

Thomas & Betts, headquartered in Memphis, Tennessee, sells into the data center space on two fronts: cabling and electrical infrastructure.

It sells power products to data centers through its Power Solutions division. The products include digital static transfer switches, power-distribution gear and uninterruptible power supply (UPS) systems.

The company touches the data center industry on the cabling side by providing connectivity, grounding and wire-management solutions for telecommunications companies.

ABB said the transaction doubled the size of the North American low-voltage market it could address to $24bn.

At $72 per share, the sale price is a 24% premium on Thomas & Betts’ closing stock value on 27 January. It’s a 35% premium to the volume-weighted average stock price over the past 60 trading days.