BOSTON, MA, May 5, 2008 –EnerNOC, Inc. (NASDAQ: ENOC), a leading developer and provider of clean and intelligent energy solutions, today announced that it has acquired privately-held South River Consulting, LLC (South River), an energy procurement and risk management services provider. The acquisition of the Baltimore, Maryland-based company strengthens EnerNOC’s position in the rapidly growing energy procurement services market and provides a local presence for EnerNOC in the PJM Interconnection service region.
“Strengthening our energy procurement service capabilities will expand and enhance the value that we can deliver to our customers,” said Tim Healy, chairman and chief executive officer of EnerNOC. “By integrating South River’s wholesale market knowledge and technology platform with our own technologies and expertise in deregulated market dynamics, we will strengthen our portfolio of energy management solutions and further differentiate ourselves from the competition. We believe that can help our customers save money and further propel change in the way businesses think about energy consumption.”
Existing EnerNOC customers will have access to an enhanced energy procurement services offering, while existing South River customers will have the opportunity to capitalize on EnerNOC’s full suite of demand response and energy management solutions. To date, South River has helped more than 200 customers improve their energy procurement and risk management practices, including University of Maryland Medical System, Johns Hopkins Hospital, Loyola College, Domino Sugar, Becton Dickenson, GSA Center for Energy Expertise, and the City of Baltimore.
“EnerNOC and South River have previously collaborated on a number of client engagements, and we’ve seen firsthand the value that our joint partnership can bring to our customers,” said Bert Wilson, South River’s co-founder. “We have longstanding relationships with clients nationwide, particularly in the Mid-Atlantic region, and we’re confident that our partnership with EnerNOC will only strengthen our ability to service our customers with premiere energy management solutions.”
EnerNOC, which acquired energy procurement services provider MDEnergy in September 2007, expands its service capabilities and customer base with this latest acquisition. EnerNOC’s current offering includes an online reverse-auction technology platform, called EnerNOC Exchange™, which brings together buyers and sellers of energy and helps customers make more informed energy purchasing decisions.
Under the terms of the transaction, EnerNOC acquired 100% of the membership interests of South River for a purchase price equal to approximately $4.75 million, in addition to certain adjustments, which consisted of $3.0 million in cash and 120,000 shares of EnerNOC common stock that had a value of approximately $1.75 million as of the closing date, plus certain earn-out payments contingent on South River attaining specific revenue and gross margin targets over the next 24 months. This acquisition does not alter the financial guidance that EnerNOC has previously provided.
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About South River Consulting
South River Consulting, formed in 1998, is an independent energy advisor assisting clients in the effective procurement of energy in a deregulated market. The firm specializes in the development and implementation of energy procurement strategies for end user clients nationwide, with an emphasis of working with clients in the MidAtlantic region.
About EnerNOC
EnerNOC, Inc. is a leading developer and provider of clean and intelligent energy solutions to commercial, institutional, and industrial customers, as well as electric power grid operators and utilities. EnerNOC's technology-enabled demand response and energy management solutions help optimize the balance of electric supply and demand. The Company uses its Network Operations Center, or NOC, to remotely manage and reduce electricity consumption across a network of commercial, institutional, and industrial customer sites and make demand response capacity and energy available to grid operators and utilities on demand. For more information visit www.enernoc.com.
Safe Harbor Statement
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the future growth and success of the Company's energy procurement and risk management solutions and the Company’ position as it relates to its competition, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section “Risk Factors” in EnerNOC's Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the Securities and Exchange Commission on March 28, 2008, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
