NEW YORK, Feb 26 Itron Inc., which makes power meters, said it will acquire Luxembourg-ba

NEW YORK, Feb 26 (Reuters) Itron Inc., which makes power meters, said it will acquire Luxembourg-based Actaris Metering Systems for about $1 billion to create one of the largest metering companies in the world.

The deal also involves the retirement of about $580 million of debt. The acquisition is expected to close in the second quarter of 2007.

The deal is expected to boost non-GAAP earnings per share by 20 to 30 cents in 2007 and is subject to review by regulators in countries including Ukraine, Germany, Brazil, Spain and Portugal.

The deal will be financed by cash on hand, credit facilities provided by UBS and a $235 million private placement of equity, completed yesterday.

Itron said yesterday the acquisition will expand Itron's product offerings and increase access to global markets for electricity, gas and water meters and automated meter reading technology.

For the 12 months ended Dec. 31, Actaris generated revenue of $1 billion, Itron said.

''This acquisition, which will more than double Itron's annual revenues, brings together two industry leaders and reunites two former Schlumberger divisions,'' said LeRoy Nosbaum, Itron's chairman and CEO.

UBS was financial advisor to Itron.

REUTERS SBA RN0512