Industrial energy efficiency software firm, Arkados Group, announced plans to acquire solar developer SolBright Renewable Energy in a $15 million deal. Under the proposal, Arkados will buy SolBright’s assets with a mix of cash, debt and stock. The deal includes $40 million of SolBright’s energy projects and its projects in development across the eastern US.
“This acquisition allows us to greatly scale and diversify our services business, add significant current and future revenues and cash flows and expand the penetration of our smart building solutions based on our Arktic software platform into a blue-chip customer base,” said Terrence DeFranco, CEO of Arkados.
The transaction would allow Arkados to begin directly integrating its efficiency software for commercial facilities and industrial machinery with solar power generation. The software gathers data and controls industrial and commercial machinery in order to optimize energy efficiency. The combination of that with on-site commercial-scale power generation and emerging battery storage technology will allow the companies to better integrate energy efficiency with industrial applications. Furthermore, SolBright and Arkados seek to capitalize on the estimated $1.2 to $3.7 trillion in growth over the next 10 years in the data analytics and cloud-based efficiency software market.
“We are very excited about the merger of our business with Arkados,” said Patrick Hassell, Managing Director of SolBright. “We have worked hard over the past 8 years growing our business and believe that the combination of our services with the robust technology solutions of Arkados will give us an edge in further differentiating ourselves as this tremendous market evolves.”
The deal will reposition SolBright as a regional force in the growing solar industries in North Carolina and South Carolina. With headquarters in Charleston, SC, SolBright has focussed on developing large-scale commercial, industrial and military solar projects that range from 100 kilowatts to 5 megawatts. For instance, the company developed and constructed a 2.6 megawatt, 18,000 panel rooftop solar installation at Boeing’s North Charleston, SC, campus in 2011. The installation provides the campus with 20 percent of its annual power demands.
“We believe there is great demand for digital solutions in the renewables industry and are impressed with the advantages that our customers can gain from Arkados’ technology solutions. There is a growing market that demands higher efficiency with less cost and we believe that the combination of SolBright’s services and Arkados’ technology is a winning formula,” added Hassell.Tweet