PowerSecure International, Inc. (Nasdaq: POWR) today announced that PowerSecure has acquired Lime Energy’s (Nasdaq: LIME) energy services company (ESCO) support business, which serves major ESCOs in delivering energy efficiency upgrades for large facilities, for $1.9 million in cash. PowerSecure also will assume $3.7 million of net liabilities related to projects in progress.
PowerSecure takes over approximately $27 million of projects previously awarded to Lime Energy and expects to recognize the revenue and profit from these projects as they are completed.
PowerSecure expects that the transaction will be accretive to EBIDTA and earnings in 2013, subject to finalization of the accounting related to the amortization of intangible assets. PowerSecure will reflect these projects in its reported revenue backlog as customer transition, permitting and bonding matters are finalized.
“We are excited to serve major energy services companies in their delivery of energy efficiency solutions to customers coast-to-coast. In addition to taking over existing projects, we are also excited about the strong pipeline of potential new projects Lime’s team has developed,” said Sidney Hinton, chief executive officer of PowerSecure.“The addition of Lime Energy’s proven ESCO business provides additional capabilities that complement our existing best-in-class energy efficiency offerings and opens new potential channels for our LED lighting, distributed generation and utility infrastructure solutions,” Hinton added. With the acquisition, PowerSecure adds to its portfolio of energy efficient facility technologies and expertise, which now includes lighting solutions, HVAC system upgrades, building envelope upgrades, transformer efficiency upgrades and water conservation systems. The business serves ESCOs by providing energy efficiency solutions across a range of facilities, including high-rise office buildings, distribution facilities, manufacturing plants, retail sites, mixed use complexes, large government sites and small, local facilities. PowerSecure’s strong financial position is a catalyst for the transaction, given the projects’ stringent performance bonding requirements, PowerSecure’s exceptional balance sheet and track record of success on large infrastructure projects.