World Energy to be acquired for $76M
Matt Volpini
World Energy CEO Phil Adams
Worcester-based energy services firm World Energy Solutions has agreed to be acquired by EnerNOC Inc., an energy intelligence software firm headquartered in Boston.
EnerNOC will purchase World Energy for $5.50 per share, according to a statement released Tuesday afternoon by World Energy. The transaction will total approximately $76 million and is expected to close in the first quarter of 2015, according to EnerNOC.
“This transaction reflects World Energy’s strategic position and core competencies in the United States retail energy market,” World Energy CEO Phil Adams said in a statement. “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.”
Adams noted that EnerNOC is buying World Energy shares at a price premium; the company’s stock price closed at $4.15 Wednesday, but jumped nearly 32 percent to $5.47 Wednesday morning.
“The price premium reflected in EnerNOC’s offer supports our management’s objective to realize value for our shareholders and create an exciting opportunity for our employees,” Adams said.
The World Energy acquisition is expected to add about $30 million to EnerNOC’s annual revenue through the integration of World Energy’s software into the company’s platform, according to EnerNOC Chairman and CEO Tim Healy.
"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,” Healy said in a statement.
According to EnerNOC, World Energy has transacted more than $45 billion in electricity, natural gas and environmental commodities for its U.S. customers, making it a top energy procurement company by both revenue and volume. Over the first half of this year, World Energy generated $18.9 million in revenue.
Founded in 2001, World Energy employs more than 100. Dan Mees, a spokesman for World Energy, declined to comment on how the acquisition will impact operations in Worcester.
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