Itron has announced that it signed a definitive agreement to acquire privately held Comverge through the purchase of its parent company, Peak Holding Corp.Itron believes that Comverge’s demand response, energy efficiency and customer engagement solutions complement Itron’s strategy to provide more value to utilities and their customers.
The agreement stipulates that Itron will acquire Comverge in a cash transaction valued at approximately $100 million.
In a release, Philip Mezey, said: “The acquisition of Comverge enables Itron to offer a unique solution set that brings Comverge’s demand management solutions to the edge of the network using OpenWay Riva’s edge intelligence and processing capabilities. This will enable utilities to better integrate distributed energy resources and optimise grid performance and reliability. With this acquisition, we are delivering even more value for our customers on top of industry-leading AMI and smart grid solutions enabling a robust, active grid."
Itron says that through its combination of software, hardware and services, Comverge helps utilities optimise every aspect of a demand management programme, from participant recruitment and device installation to call center support, control events, and measurement and verification.
Enhanced utility offering
Comverge has reportedly deployed almost 3 million energy management devices into mass market demand management programmes. In 2016, the company generated $60 million
“There are tremendous opportunities that exist, between our technologies, operations and customer relationships. The combination of Comverge and Itron is beneficial for both companies, and most importantly, to our employees and customers,” said Gregory Dukat, Comverge’s chairman, president and chief executive officer.
“We’ve spent the last several years successfully pivoting from a hardware-oriented demand response company to a software and services company focused on delivering increased value to our customers. By integrating with Itron’s platform, we create a more compelling offer that leverages data and analytics to optimize the management of distributed energy resources, delivering even greater customer value.”
Itron noted that excluding acquisition and integration-related costs, amortization of acquired intangible assets and purchase accounting adjustments, it anticipates the acquisition will be neutral to non-GAAP earnings per share in 2017 and accretive beginning in 2018. The transaction is expected to close in the second quarter of 2017, subject to customary closing conditions.
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