EnerNOC Enhances Energy Intelligence Software Platform With Acquisition of World Energy Solutions
EnerNOC to Acquire Leading Cloud-Based Supply Procurement Software Vendor
BOSTON -- EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of energy intelligence software (EIS), today announced that it has entered into an agreement to acquire World Energy Solutions, Inc. (Nasdaq:XWES), an energy management technology and services firm that helps enterprises simplify the energy procurement process through a suite of Software-as-a-Service (SaaS) tools.
"World Energy's software is used by more than 4,000 enterprises for energy supply management. The integration of World Energy's software into our platform will help accelerate EnerNOC's product roadmap and add approximately $30 million to EnerNOC's enterprise annual recurring revenue," said Tim Healy, Chairman and CEO of EnerNOC. "This acquisition advances our energy intelligence software business and will help us deliver more value to our enterprise customers who are looking to increase productivity and take control of their energy costs."
"EnerNOC's vision for EIS starts with buying energy better, using software tools to secure the most favorable price and contract structure, and managing vast amounts of procurement data, contract data, and market position data in a single, user-friendly platform. World Energy has built that capability over the past 10 years and it is a natural complement to EnerNOC's existing software and vision," said Micah Remley, EnerNOC Vice President of Product Strategy and Technology. "Together, we will be able to help enterprises control costs and stay competitive in an increasingly global marketplace."
"This transaction reflects World Energy's strategic position and core competencies in the United States retail energy market," stated Phil Adams, CEO of World Energy. "Our software-based auction platform continues to demonstrate significant value to participants in the retail energy sector and is poised to deliver significant synergies and cost savings to customers as part of EnerNOC's energy intelligence software platform."
To date, World Energy has transacted more than $45 billion in electricity, natural gas, and environmental commodities for its customers, making it one of the top energy procurement specialists in the U.S. by revenue and volume. In the six months ended June 30, 2014, World Energy generated $18.9 million in revenue with 77 percent gross margins. With more than 100 employees, the company is headquartered in Worcester, MA, and has a strong ecosystem of channel partners. Its customer base extends across the US, with concentrations in key strategic markets like Texas, Massachusetts, Pennsylvania, Ohio, New Jersey, and New York.
EnerNOC has agreed to acquire World Energy for a purchase price of $5.50 per share, and the assumption of debt for a total transaction value of approximately $76 million in cash. The Boards of Directors of EnerNOC and World Energy have unanimously approved the transaction, which will be effected through a tender offer and is expected to close in the first quarter of 2015, subject to the satisfaction of customary closing conditions. The transaction is expected to be accretive to EnerNOC earnings in 2016.
EnerNOC is a leading provider of cloud-based energy intelligence software (EIS) and services to thousands of enterprise customers and utilities globally. EnerNOC's EIS solutions for enterprise customers improve energy productivity by optimizing how they buy, how much they use, and when they use energy. EIS for enterprise includes supply management, utility bill management, facility optimization, visibility and reporting, project management, demand management, and demand response. EnerNOC's EIS solutions for utilities help maximize the value of demand-side resources, including fully outsourced and utility-managed demand response and energy efficiency programs that drive customer engagement. EnerNOC supports customer success with its world-class professional services team and a Network Operations Center (NOC) staffed 24x7x365. For more information, visit www.enernoc.com.