EnerNOC Buys M2M for Its Wireless Tech and Utility Contracts in California, Midwest
[Updated 3:30 pm with financial terms. See below] EnerNOC, the Boston-based energy management firm (NASDAQ: ENOC), continues to look west for its acquisitions. The company announced today it has bought M2M Communications, a Boise, ID-based wireless technology company that has key contracts with energy utilities in California and the Midwest. Financial terms of the deal weren’t given in the release, but EnerNOC says it expects to start making money from the acquisition in 2012.
A company spokesman sent me a statement later in the day: “The total purchase price paid by EnerNOC at closing was $30.0 million, plus an additional $3.3 million paid as a result of M2M having a positive capitalization amount at closing.” The payment was made in cash and common stock, according to the statement.
M2M’s remote monitoring and control technology and utility contracts “are an ideal complement to EnerNOC’s suite of offerings for utility, commercial, and industrial customers,” said Tim Healy, EnerNOC’s chairman and CEO, in a statement. “M2M has the unique ability to tap into largely un-penetrated markets, such as demand response at agricultural facilities.”
EnerNOC helps utilities manage electrical demand from customers and respond to times of peak activity, among other kinds of programs. The M2M deal is the latest in a series of interesting acquisitions for the company. Last month, it bought Global Energy Partners, a California-based engineering and services company. And just over a year ago, EnerNOC acquired Cogent Energy, also in California, in part to help expand its customer pool out west.