Boston energy software company EnerNOC Inc. announced on Tuesday that they plan to lay out $76 million in cash for energy auction business World Energy Solutions, Inc. This places a value of $5.50 for each share of World Energy stock, about 1/3 higher than Tuesday’s closing price of $4.15 per share (Nasdaq: XWES). EnerNOC will also be taking on World Energy’s debt, totaling approximately $10 million as of the end of June.
Directors at both Enernoc and World Energy already approved the deal, which is expected to close during Q1-2015.
EnerNOC Chairman and Chief Executive Timothy G. Healy said, “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.”
The two companies have overlapping customer bases. Users of EnerNOC software include companies, utilities and various other entities buying and managing energy while World Energy runs online energy auctions.
EnerNOC revenues during 2013 totaled about $383 million with profits of $22 million, compared to World Energy’s revenues of $35 million with a net loss of $2 million. EnerNOC reported it expects the deal to boost its annual revenue by about $30 million.
World Energy is allowed to seek offers from other buyers for another 55 days, with EnerNOC having the right to match any offer.
What the deal means for employment is unclear. World Energy currently has more than 100 workers. EnerNOC said in an SEC filing that employment decisions will be made during planning to integrate the businesses.