Commercial, Demand Management, Distributed Energy Resources, Energy Efficiency, Utilities - February 29, 2016
Southern to acquire PowerSecure International for $431M
The pace of change in the utility sector received further evidence last week when Southern Co. announced plans to acquire PowerSecure International for its distributed generation, energy efficiency and utility infrastructure solutions.
In a Feb. 24 news release, Southern said the deal will position them "to accelerate the ongoing expansion of energy product offerings that are intended to provide customers greater control of their energy use and will add complementary technical depth in customer-located reliability and efficiency technologies.”
In other words, utilities such as Southern recognize their customers want more from their power providers, particularly with regard to energy efficiency and energy management. As these services are typically outside of utilities' core competencies, utilities are buying up companies that can help fill the gap.
"As energy technologies and customer expectations continue to evolve, the electric utility business model is increasingly expanding beyond the meter," Southern Chairman, President and CEO Tom Fanning said in a statement. "Today there is demand for distributed infrastructure solutions that best meet each customer's unique energy needs.”
Under the terms of the agreement, PowerSecure's stockholders will be entitled to receive $18.75 in cash for each share of PowerSecure common stock. The estimated purchase price is approximately $431 million. The companies expect to complete the transaction by the end of the second quarter of 2016.
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