Itron's $100M Comverge acquisition aims to expand Smart Grid offerings
May 11 2017
Itron, an American technology company that sells innovative IoT sensor technologies and edge computing analytics from the Itron Riva platform, signed a definitive agreement to acquire Comverge in a cash transaction valued at approximately $100 million. Itron sells gas, water, electricity and smart cities solutions.
Comverge provides integrated demand management solutions for electric utilities. It sells hardware, software, and services.
Comverge's acquisition will enable Itron to deploy demand management solutions to the edge of the network. This will be achieved using OpenWay Riva’s edge intelligence and processing capabilities. The buyout also makes sense as Comverge solutions (includes hardware and software) are already deployed in nearly 3 million energy management devices. Add to it the $60M revenues Comverge generated in 2016.
The journey for Comverge was not linear. It pivoted from a hardware-oriented demand response company to a software and services company focused which decreased its customer churn and increased revenue per customer. The rise in demand for Comverge-type solutions is due to the need for near-real-time data required by utility companies. It helps run predictive and prescriptive analytics on top of their data.
Itron will host a webcast on May 8, 2017, at 12:00 p.m. EDT to discuss Comverge's planned acquisition.
+ The hardware component of Comverge consists of IntelliPEAK 700 and IntelliPeak DirectLink. The former is a load control switch which provides radio frequency signal reliability and reach, individual and group addressing, and fail-safety. The IntelliPeak DirectLink is a digital control unit (DCU), a switch having Wi-Fi or cellular radio for utilities seeking to implement demand response programs with two-way communications.
+ Dynamic pricing, advanced load control, and smart grid are three key uses cases that Itron will add to its portfolio of solutions via Comverge's acquisition.
+ The transaction is expected to close in the second quarter of 2017.
@UtilityDive Yes - the right move for Itron. This was an adjacency they were missing right from the beginning.— Mani Vadari (@ModernGridSolns) May 9, 2017