Generac to acquire ecobee
Generac, a global designer and manufacturer of energy technology solutions, signed an agreement to acquire ecobee, a sustainable smart home solutions firm, in a transaction valued up to $770 million, the Waukesha. Wis.-based company reported.
The acquisition is contingent on the achievement of certain performance targets, Generac noted, and is expected to close during Q4, subject to customary closing conditions.
“ecobee’s solutions are an important addition to Generac’s extensive residential energy technology portfolio,” said Aaron Jagdfeld, president and CEO of Generac.
A pioneer in the smart thermostat market, Toronto-based ecobee has a team of more than 500 employees globally; and its smart thermostats, the firm noted, intelligently optimize heating and cooling systems to deliver significant energy savings for homeowners.
“Residential HVAC systems represent the largest energy-consuming device in the home today and ecobee’s smart thermostats and sensors offer the most intelligent way to balance comfort with conservation,” noted Jagdfeld.
“In addition, the ability to combine ecobee’s cutting-edge technologies with Generac’s power generation, energy storage and energy management devices will allow us to create a clean, efficient, and reliable home energy ecosystem,” the CEO pointed out.
He further indicated that this move will not only save homeowners money, but also help grid operators meet the challenges of an electrical grid under enormous stress by providing solutions to better balance supply and demand.
“Generac’s evolution into an energy technology solutions company creates many opportunities to integrate our ecobee products with their residential device offerings, enabling direct monitoring and control of a significant portion of the home’s electrical load,” said Stuart Lombard, founder and CEO of ecobee.
“We are excited to join the Generac team so together we can deliver a cleaner, more resilient and sustainable energy future for our customers and communities,” added Lombard.
At closing and subject to customary adjustments, Generac said it will pay $200 million in cash along with $450 million in GNRC common stock to the current equity holders of ecobee.
ecobee Inc. was founded in 2007 with a mission to improve everyday life while creating a more sustainable world.
Founded in 1959, Generac is a leading energy technology company that provides backup and prime power systems for home and industrial applications, solar + battery storage solutions, advanced power grid software platforms and engine- and battery-powered tools and equipment.