Commercial, Demand Management, Energy Efficiency, Industrial - June 23, 2017 - By Amy Poszywak
EnerNOC to be sold to Italy's Enel for $300M
Following months of corporate struggles and restructurings, demand response provider, a multinational power utility company based in Italy.
Enel has agreed to purchase Boston-based EnerNOC through its Enel Green Power North America Inc. subsidiary for $7.67 per share in an all-cash transaction valuing the company at over $300M, including EnerNOC's net debt of around $50 million, according to the companies' respective news releases announcing the deal. The price tag represents about a 42% premium to EnerNOC's closing stock price on June 21 and a 38% premium to the 30-day volume weighted average price.
EnerNOC Chairman and CEO Tim Healy said the decision followed the company's review of strategic options to maximize shareholder value. The deal, he said, will provide stockholders with 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," the CEO said in a statement.
EnerNOC in March said it may be forced to offload certain business operations or sell the company after investing heavily in the expansion of its energy efficiency and management software businesses.
"On the software side of the business, although we had a number of strategic sales wins and more recently have seen indicators of accelerated market adoption, the near-term opportunity has materialized much more slowly than we expected," Healy had said at the time.
The news follows months of volatility in EnerNOC stock amid other strategic announcements; in September 2016 the company announced a restructuring of its subscription-based energy information systems business that resulted in a 15% reduction in the company's global workforce. And in June 2016, EnerNOC announced the sale of its industrial utility services business unit to CLEAResult.
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