Energy management and demand response company EnerNOC, Inc. (NASDAQ: ENOC) has acquired M2M Communications, a leading provider of wireless technology solutions for energy management and demand response. Financial terms were not disclosed.
This is EnerNOC's 10th acquisition, as it expands to cover the full spectrum of energy management services. (The previous acquisiition was competitor Global Energy Partners in December 2010.)
M2M manages hundreds of megawatts of demand response capacity throughout the United States and has contracts with leading utilities including Pacific Gas and Electric, Idaho Power, PacifiCorp, Midwest Energy, and National Grid, among others. Founded in 2003 in Boise, Idaho, M2M uses wireless technology and automated demand response solutions.
“M2M’s technology expertise and its contracts with key utilities--particularly in California and the Midwest--are an ideal complement to EnerNOC’s suite of offerings for utility, commercial, and industrial customers,” said Tim Healy, EnerNOC Chairman and CEO. “M2M has the unique ability to tap into largely un-penetrated markets, such as demand response at agricultural facilities, which represents more than 10,000 megawatts of DR potential in the United States and even more worldwide.”
In California, M2M is the largest third-party provider of automated demand response and is experienced in the agricultural demand response market. M2M has established a Fresno office and teamed with multiple utilities and the US Department of Energy to create the Peak Energy Agriculture Rewards (PEAR) program. PEAR focuses on the rapid enablement of demand response capacity provided by large irrigators, cold storage operators, and food and beverage processors. The market for agricultural demand response in California alone is over 1,000 megawatts, largely from thousands of irrigation pumps that can be curtailed throughout the Central Valley, a region that produces approximately 8% of the nation's agricultural output.
EnerNOC, already one of the world’s largest providers of third-party automated demand response, expands its portfolio of automated resources with this acquisition.
“As the demand response market continues to grow and mature, having the right technology and industry expertise across a wide-variety of vertical markets becomes increasingly important,” said Rick Nicholson, Vice President IDC Energy Insights. “Demand response solution providers that offer an array of solutions, from automated to manual dispatch and blended solutions in between, will continue to see success in this market.”
EnerNOC anticipates this acquisition to be dilutive in 2011 and accretive in 2012.