Itron to acquire Comverge for $100m
May 23, 2017
Smart meter company Itron is to acquire privately held demand response firm Comverge by purchasing its parent company, Peak Holding, in a cash transaction valued at approximately $100m.
Itron is known for its OpenWay Riva IoT communications platform.
“The acquisition of Comverge enables Itron to offer a unique set that brings Comverge’s demand management to the edge of the network using OpenWay Riva’s edge intelligence and processing capabilities,” said Philip Mezey, president and chief executive officer of Washington-based Itron. “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.”
US firm Comverge provides integrated cloud-based demand response, energy efficiency and customer engagement products that help electric utilities ensure grid reliability, lower energy costs, meet regulatory demands and enhance the customer experience. Through its combination of software, hardware and services, it helps utilities optimise a demand management programme, from participant recruitment and device installation to call centre support, control events, and measurement and verification.
Comverge has enrolled and deployed nearly three million energy management devices into mass-market demand management programmes. In 2016, the company generated $60m in revenue.
“There are tremendous opportunities that exist between our technologies, operations and customer relationships,” said Gregory Dukat, Comverge’s chairman, president and chief executive officer. “The combination of Comverge and Itron is beneficial for both companies and, most importantly, to our employees and customers. 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 optimise the management of distributed energy resources, delivering even greater customer value.”
Excluding acquisition and integration-related costs, amortisation of acquired intangible assets and purchase accounting adjustments, the company 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.
Itron has thousands of employees supporting nearly 8000 customers in more than 100 countries.