More M&A activity for energy and carbon management companies

Schneider Electric and IBM both announced plans to acquire energy management software companies this week.

03/30/2011


In a bid to strengthen its position in energy management services, Schneider Electric announced its plans to acquire energy procurement and sustainability services company Summit Energy Services Inc. for $268 million.

commercial building energy efficiencyThe transaction, which is subject to regulatory approval and closing conditions, is the second major deal announced this week involving companies working to make the built environment more energy efficient, smarter and better connected. Earlier this week, IBM announced plans to acquire Tririga, the developer of enterprise software for real estate and facility management, in order to improve its Smarter Buildings initiative.

“The acquisition of Summit Energy allows Schneider Electric to broaden our energy management services and solution portfolio, offering customers the ability to manage and optimize their energy consumption from the supply side through the demand side, while also growing our energy and environmental online reporting capabilities,” Chris Curtis, Schneider Electric’s senior executive vice president for North America, said.

In the broader context of energy and carbon management, "the recent acquisitions by Schneider Electric and IBM for energy management and software companies show the continued move of larger companies to shore up their offerings," said Paul Baier, vice president of sustainability consulting at Groom Energy and GreenBiz.com senior contributor.

The acquisition of Summit Energy brings Schneider a heavy hitter in the field of customer-focused service platforms for energy procurement and energy management. According to Summit, the 20-year-old firm manages more than $20 billion in annual energy spend for 650-plus companies with facilities in some 90 countries. Summit expects to generate about $65 million in sales this year.

Like many firms operating in the efficiency space, Summit moved from a traditional approach to energy management to expanded offerings that reflect customers' growing needs for sophisticated tools to calculate and manage carbon data. Summit was considered among the top 10 companies providing energy enterprise carbon accounting last year, according to the 2011 Enterprise Energy and Carbon Accounting Buyers Guide.

Such standing made Summit, and other firms like it, attractive to larger companies, such as Schneider. Transactions like the ones announced this week are expected to become a growing pattern.

Baier pointed to other notable acquisitions in the past six months of smaller, nimble and relatively young firms by larger, well-established, big-name organizations. They include EnerNOC's purchase of M2M Communications, a wireless technology provider of energy management systems, and Global Energy Partners, a leader in designing energy demand response programs; Siemens' acquisition of Site Controls, an energy management software company; and Johnson Controls' purchase of demand response specialist, EnergyConnect.

"Look for these large companies -- as well as others like Honeywell, Ingersoll Rand and Rockwell -- to make more acquisitions," Baier said. "Smaller firms that could be acquisition targets include Pace Global, Entech, ENXSuite, Hara, and World Energy. With energy prices beginning to rise and senior management teams much more aware of the energy savings opportunity in their organizations, large corporations are demanding broader and more sophisticated energy management solutions."

Read more about the Schneider Electric/Summit Energy or IBM/Tririga deals.

- Edited by Bettina Chang, Consulting-Specifying Engineer, www.csemag.com



The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Pipe fabrication and IIoT; 2017 Product of the Year finalists
The future of electrical safety; Four keys to RPM success; Picking the right weld fume option
A new approach to the Skills Gap; Community colleges may hold the key for manufacturing; 2017 Engineering Leaders Under 40
Control room technology innovation; Practical approaches to corrosion protection; Pipeline regulator revises quality programs
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Power system design for high-performance buildings; mitigating arc flash hazards
VFDs improving motion control applications; Powering automation and IIoT wirelessly; Connecting the dots
Natural gas engines; New applications for fuel cells; Large engines become more efficient; Extending boiler life

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
This digital report explains how plant engineers and subject matter experts (SME) need support for time series data and its many challenges.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me