Ecova says the acquisition will solidify its leadership position in the energy and sustainability market and will expand the company’s overall capabilities for utility expense management. The acquisition will also grow Ecova’s client base to nearly 700 commercial companies and give it new offices in Dallas and Houston.
The news comes less than two months after Ecova announced its intent to buy Prenova, an enterprise energy management firm and maker of the Energy Point application. And last month, Rite Aid selected Ecova to provide utility expense and energy management services for its 4,700 U.S. locations.
Ecova said the LPB acquisition gives it the ability to deliver insights based on energy cost and consumption across more facilities, increasing benchmarking capabilities and data. And for Ecova’s utility clients, this acquisition brings additional locations from which utilities can work with commercial customers to enhance existing commercial energy efficiency programs, the company said.
Ecova’s CEO Jeff Heggedahl will continue to lead the combined organization and the Dallas office will become Ecova’s South Central regional office.
The transaction is projected to close by January 31, to be funded by Ecova through an expansion of its credit facilities and an equity infusion from existing shareholders, and to be neutral to Ecova’s earnings in 2012. LPB reported revenue of $18.4 million for the year ended December 31, 2010 and $15.0 million for the nine months ended September 30, 2011.
Earlier this week Siemens announced that it has completed the acquisition of Pace Global Energy, a company that combines strategic enterprise consulting with energy and carbon management.
Consolidation has been a major force in the building automation and energy management markets. Siemens has also acquired SureGrid, while Schneider Electric picked up Vizelia and Summit Energy, Serious Materials bought Valence Energy, and IBM announced that it will buy Tririga.