Dive Brief:
- Enel Green Power North America wants to purchase EnerNOC for $7.67/share in an all-cash deal, which also appears to contain significant debt.
- In March, the demand response company said it was considering "strategic alternatives" that could include the sale of its software business or the entire company. Slow international sales was cited as one reason for the move.
- The two companies' announcements described the deal slightly differently: EnerNOC calculated the deal at $300 million, while Enel puts it at $250 million, excluding debt, Greentech Media points out.
Dive Insight:
The EnerNOC deal announcement comes just a year after Opower was purchased by Oracle, indicating a possible contraction in the demand management space.
Enel Green Power, owned by Italian power company Enel, will launch a tender offer to acquire all of EnerNOC’s shares of common stock at a 42% premium to the company's closing stock price on June 21. Tim Healy, EnerNOC chairman and CEO, said in a statement that the deal gives shareholders "significant and immediate cash value."
"In combining forces with the Enel Group, we look forward to accelerating the growth of our core businesses and to delivering ever more value to our customers as we lead the transition to a more sustainable, distributed energy future,” said Healy.
EnerNOC's Board of Directors has unanimously approved the sale, which is expected to close in the third quarter of this year. Morgan Stanley and Greentech Capital Advisors are serving as financial advisors and Cooley LLP is acting as legal counsel.
In spring of last year, Oracle purchased Opower for more than $500 million, creating the largest cloud services company in the utility sector.
