Under the deal, Landis+Gyr will supply the majority of 16 million smart meters to be rolled out to British Gas customers by 2020.
Landis+Gyr plans to double its 600-strong UK workforce and expand its factories to prepare for the UK-wide gas and electricity smart meter rollout.
Chris Weston, managing director of British Gas, said the investment meant it could bring customers the benefit of smart meters “as soon as possible”. The energy company has already installed more than a million smart meters and plans to recruit 500 smart energy experts in 2014.
The two companies have been working together for the last three years to develop the technology, according to Landis+Gyr chief executive Andreas Umbach. He said: “This is the largest deal of its kind worldwide and sets a new industry standard for working in partnership. It allows us to achieve significant economies of scale in meter production, to expand our UK operations and to further establish the UK as a global centre of smart energy excellence.”