Raj Prabhu,
Managing Partner,
Mercom Capital Group
 
Austin, TX, U.S.A. --- (METERING.COM) --- October 23, 2012 - After a weak half year, smart grid venture capital funding showed some signs of life in Q3 2012 with $238 million in 12 deals, according to Mercom Capital Group’s latest quarterly update.

The rise in funding was mostly due to $136 million raised by Alarm.com, a security and home automation company.

“The Alarm.com funding deal and the acquisition of Vivint for $2.2 billion by Blackstone Group is part of a growing trend where home security companies have expanded into home automation,” said Raj Prabhu, managing partner at Mercom Capital Group. “We expect to see more transactions in this niche where security, cable and telecom companies expand their offerings to cover the whole ‘connected or digital’ home services which would include everything from communication and automation services to solar installations.”

Apart from Vivint and Alarm.com, other companies in the home security/home automation business that have been involved in funding and M&A deals in the last few years include AlertMe, Intamax Systems, Control4, iControl Networks, Home Automation, APX Alarm and Xanboo.

Besides the $136 million raised by Alarm.com, the other top deals this quarter included $23.3 million raised by energy management company GridPoint, $15 million raised by demand side management solutions company Viridity Energy, $14 million raised by geospatial information systems company Space-Time Insight, and $12.6 million raised by wireless connectivity solutions provider SIGFOX.

Merger and acquisition (M&A) activity in Q3 2012 totaled $2.2 billion in five transactions. Top M&A transactions were the $2 billion acquisition of Vivint, a home automation services company, by Blackstone, and the $183 million acquisition of smart grid and automation solutions provider ZIV Group by electrical transmission and distribution equipment company Crompton Greaves.