Wartsila aims to become 'global systems integrator' with Greensmith acquisition
Finnish power system manufacturer Wartsila has signed an agreement to acquire Greensmith Energy Management Systems for an undisclosed sum.
Wartsila hopes to use the acquisition of the storage software company to expand its footprint in the storage and distributed energy markets and become a "global systems integrator."
- The transaction, which is subject to U.S. regulatory approvals, is expected to close no later than July 2017.
Fresh on the heels of announcing that it is adding energy storage to its portfolio of generating plants and other power technologies, Wartsila has announced plans to buy Greensmith Energy.
The deal is part of a push by the Finnish power manufacturer into renewables and energy storage. Just a year ago, Wartsila launched a hybrid plant that combines its thermal generation offerings with solar power.
The companies are already familiar with one another. In 2016, Wartsila signed an agreement to have Greensmith provide energy management system software to control its storage devices.
Founded in 2008, Greensmith has relationships with some of the largest companies in the power sector.
American Electric Power recently installed Greensmith software at its Milton battery installation in West Virginia, enabling the facility to expand its revenue stream by providing frequency regulation service. And in 2015 AEP invested $5 million in Greensmith.
E.On also has a stake in Greensmith, but Energy Storage News reports that the German energy giant has sold its stake in the software company in the wake of the Wartsila announcement.
E.On will, however, retain its partnership with Greensmith. The two companies are working together on a 20 MW storage facility at a Texas wind farm (pictured above).
Wartsila views the Greensmith acquisition as a chance to grab a stake in what it sees as a rapidly growing market.
“Together with Greensmith we will become a global energy systems integrator,” Javier Cavada, president of Wartsila Energy Solutions, said in a statement. “Greensmith provides unparalleled software and energy storage knowledge and we provide our global footprint, EPC expertise and large sales network. A perfect match.”
The acquisition announcement is one in a string of acquisitions in which global energy firms have bought or taken stakes in energy start-ups.
- Greentech Media Wartsila to Acquire Greensmith for Energy Storage Software
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