After scooping up demand response companies in Ireland and Germany in February, EnerNOC has bagged its third company this year to bolster energy management offerings.
EnerNOC purchased EnTech USB, a global utility bill management software firm that started in the U.K. to serve the growing deregulated energy marketplace. The company has expanded worldwide to more than 100 countries and counts eight of the Fortune 50 as clients.
The software, which supports more than 200,000 utility tariffs, will be integrated into EnerNOC’s energy intelligence software to provide more detailed information on forecasting energy costs. For some potential clients, simply helping them break down utility bills is an important first step, before jumping deeper into energy efficiency projects. Utility billing information can also help potential and existing clients evaluate economic demand response opportunities.
"EnTech has impressive global reach. Its software product is the global UBM [utility bill management] solution of over 50 enterprises. Eight of the Fortune 50, including the largest companies in the world in telecommunications, consumer products, banking and auto manufacturing rely on EnTech's UBM software," Tim Healy, Chairman and CEO of EnerNOC, said in a statement.
EnerNOC has primarily been expanding overseas with its demand response offering. But EnerNOC co-founder David Brewster recently told Greentech Media that in Germany, one of its largest potential international markets, the company expects to expand into efficiency. About 20 percent of EnerNOC’s revenues came from outside North America in 2013.
Demand response still makes up the bulk of EnerNOC’s revenue, but the company has been slowly diversifying for the past few years into energy efficiency software.
“In addition to accelerating and streamlining data collection, the combination of monthly bill data with real-time energy consumption data greatly improves an organization's ability to effectively manage energy," Oliver Dawson, CEO of EnTech, said in a statement.
Some financial analysts agreed that the acquisition would strengthen EnerNOC’s ability to increase recurring revenue outside of demand response. “We believe EnTech’s utility bill management capabilities are a strong compliment to ENOC’s product suite and should improve ENOC’s cross-selling abilities,” said Baird Equity researchers. Not only will the acquisition strengthen EnerNOC's offering in a crowded energy efficiency software market, but it could also offer another entry point into international markets.
EnTech has about $10 million annual revenue and offices in eight countries. The acquisition is expected to close this month.