ABB Makes $1B Acquisition for Energy Management Software

Switzerland-based technology group ABB has agreed to acquire energy management software company Ventyx from Vista Equity Partners for more than $1 billion. 

Energy management technology is at the core of the smart grid revolution that is getting underway in the US and abroad, and ABB said the acquisition will triple its market reach in energy
management software.

Atlanta, Georgia-based Ventyx provides software for asset management, mobile workforce management, energy trading and risk management, energy operations and energy analytics. The company also provides software solutions for planning and forecasting electricity needs, including renewables.

One of Ventyx’s key software applications gives utilities and grid
operators the information they need to better match electricity
generation with consumption, even at the household level. By generating
real-time information on electricity demand, pricing and availability,
Ventyx’s software enables a practical business model for utilities to
generate revenues from smart grids and carbon trading.

Ventyx’s load forecasting software can also help to integrate large
amounts of unpredictable renewable energies, such as wind and solar

ABB will combine its related network management business within the Power Systems division, with Ventyx to form a single unit for energy management software solutions.

Ventyx has a large installed base in the US market and Europe and
operates in more than 40 countries. Its customers include power
utilities in the United States and Europe as well as industrial
businesses. The company employs 900 people and reported 2009 revenues of
about $250 million.

“The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems,” said Joe Hogan, ABB’s CEO. “The advantage for our shareholders is a cash-generating acquisition.”

ABB expects the transaction to be completed in 2Q10. The company intends to pay for the acquisition in cash.

Last week, ABB and French battery maker Saft, announced a collaboration to build utility-scale energy storage for smart grid application.

The ABB Group of companies operates in about 100 countries and employs more than 117,000 people.

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