Clean Disruption News: Enel Snaps Up Demand Response Firm In $250M Deal
Law360, New York (June 22, 2017, 4:31 PM EDT) — The U.S. green power unit of Italian utility giant Enel Group said Thursday that it has agreed to buy demand response provider EnerNOC in a deal that values at $250 million the company that develops technology allowing consumers to be paid for using less power during high-demand periods.
Enel Green Power North America Inc. said it will pay $7.67 a share to acquire 100 percent of Massachusetts-based EnerNOC, a 42 percent premium over the company’s closing stock price on Wednesday. Enel said the acquisition will give it access to EnerNOC’s 6,000 utility, commercial, institutional and industrial customers; the 14,000 sites it actively manages in North America, Europe and Asia; and 6 gigawatts of demand response capacity.
The deal comes on the heels of Enel Green Power North America’s January acquisition of energy storage firm Demand Energy Networks and signifies a further branching out from renewable energy to energy-efficiency development. Enel Green Power North America has a portfolio of more than 100 renewable energy projects generating a combined 3.3 gigawatts of electricity and has another 900 megawatts of projects in development.
“Enel’s acquisition of EnerNOC, six months after our acquisition of Demand Energy Networks, reflects our strategic focus on the energy technology and services space,” Francesco Venturini, Enel’s head of global e-solutions, said in a statement Thursday. “As we continue to lead the transformation of the energy sector, EnerNOC’s technological expertise and positions in key markets will add further momentum to our efforts, while we leverage the existing global footprint of the Enel Group to open up new business opportunities, taking innovative services and solutions to the hundreds of millions of people we serve around the world.”
EnerNOC has a legal claim to fame as well. The company, along with the Federal Energy Regulatory Commission, persuaded the U.S. Supreme Court to revive the agency’s demand response rule in January 2016. The D.C. Circuit had nixed the rule on the grounds that it usurped state authority over retail electricity markets, but the high court held that FERC reasonably concluded that it had authority under the Federal Power Act to issue the rule because it directly affects wholesale electricity rates, which are subject to federal jurisdiction.
“The transaction provides our stockholders with significant and immediate cash value and unites us with one of the most innovative, global energy companies that shares our vision to change the way the world uses energy,” EnerNOC Chairman and CEO Tim Healy said in a statement Thursday. “In combining forces with the Enel Group, we look forward to accelerating the growth of our core businesses and to delivering ever more value to our customers as we lead the transition to a more sustainable, distributed energy future.”
EnerNOC is represented in the deal by Cooley LLP, with a team led by partner Miguel Vega and including partners Barbara Borden, Mischi a Marca and William Corcoran; special counsel Josh Friedman; associates Patrick Argenio, Megan Browdie, Jason Savich and Layne Jacobs; and Jacqueline Grise. Morgan Stanley and Greentech Capital Advisors are acting as financial advisers.
SOURCE: Law 360
VIDEO Courtesy enernoc