- Efficiency services provider CLEAResult announced plans to acquire the industrial utility services business unit of demand response leader EnerNOC. No financial details were released.
- The announcement comes just six weeks after tech behemoth Oracle announced plans to buy DR and efficiency provider Opower for more than $500 million.
- CLEAResult said the deal would bolster its commercial and industrial capabilities, helping provide energy services to sectors often unsatisfied with utility offerings.
Has the wave of consolidation moving across the utility sector hit the demand response industry? Less than two months after Opower got snapped up by Oracle, EnerNOC is spinning off its industrial services unit.
“In this particular space, a utility’s customers are looking for reliable and persistent energy efficiency programs that lead to cost-effective savings and address the unique challenges they face,” CLEAResult CEO Aziz Virani said in a statement. “CLEAResult can now offer our utility clients customized, unmatched services for their commercial and industrial customers who have been hard to engage with traditional energy efficiency programs.”
The announcement follows on the heels of EnerNOC's decision to put its utility engagement business up for sale so the company can focus on its core business to provide demand response.
The company said all team members from EnerNOC’s former industrial utility services business unit will be retained, and the group will remain in California to help CLEAResult develop "the next generation of innovative commercial and industrial energy services for clients nationwide."
CLEAResult now runs more than 370 commercial and industrial programs across North America and expects the acquisition of EnerNOC's industrial unit to boost its ability to provide demand response and customized energy efficiency services.
The CLEAResult deal follow's Oracle's decision to pay $10.30 per share in cash for Opower. That set Opower's value at $532 million. The company held its initial public offering in 2014, debuting at $25, but subsequently struggled. Now, Opower has more than 100 utility partners worldwide that serve 60 million consumers.