Dive Brief:
- Energy software and demand response provider EnerNOC has announced it will acquire World Energy Solutions, a provider of energy management technology and services, for $76 million in cash.
- World Energy Solutions software is used by 4,000 companies, EnerNOC said, and the acquisition will add more than $30 million to EnerNOC's recurring annual revenue, according to the Boston Business Journal.
- The boards of directors of both companies have reportedly unanimously agreed to the acquisition, expected to close in the first quarter of 2015.
Dive Insight:
EnerNoc says that World Energies generated more than $18.9 million in revenue during the six months leading up to June 30, and has transacted more than $45 billion in electricity, natural gas, and environmental commodities for customers.
"EnerNOC's vision for EIS starts with buying energy better, using software tools to secure the most favorable price and contract structure, and managing vast amounts of procurement data, contract data, and market position data in a single, user-friendly platform," said Micah Remley, EnerNOC Vice President of Product Strategy and Technology. "World Energy has built that capability over the past 10 years and it is a natural complement to EnerNOC's existing software and vision."
The Boston Business Journal reports that the purchase price of $5.50 per share represents a premium over World Energy's Tuesday closing price of $4.15 per share. The acquisition is expected to be accretive to EnerNOC earnings in 2016.
