NewEnergyNews: TODAY’S STUDY: SMART GRID WHEELING AND DEALING LOOKED UP IN Q3/

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

THINGS-TO-THINK-ABOUT WEDNESDAY, August 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And The New Energy Boom
  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And the EV Revolution
  • THE DAY BEFORE

  • Weekend Video: Coming Ocean Current Collapse Could Up Climate Crisis
  • Weekend Video: Impacts Of The Atlantic Meridional Overturning Current Collapse
  • Weekend Video: More Facts On The AMOC
  • THE DAY BEFORE THE DAY BEFORE

    WEEKEND VIDEOS, July 15-16:

  • Weekend Video: The Truth About China And The Climate Crisis
  • Weekend Video: Florida Insurance At The Climate Crisis Storm’s Eye
  • Weekend Video: The 9-1-1 On Rooftop Solar
  • THE DAY BEFORE THAT

    WEEKEND VIDEOS, July 8-9:

  • Weekend Video: Bill Nye Science Guy On The Climate Crisis
  • Weekend Video: The Changes Causing The Crisis
  • Weekend Video: A “Massive Global Solar Boom” Now
  • THE LAST DAY UP HERE

    WEEKEND VIDEOS, July 1-2:

  • The Global New Energy Boom Accelerates
  • Ukraine Faces The Climate Crisis While Fighting To Survive
  • Texas Heat And Politics Of Denial
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    WEEKEND VIDEOS, June 17-18

  • Fixing The Power System
  • The Energy Storage Solution
  • New Energy Equity With Community Solar
  • Weekend Video: The Way Wind Can Help Win Wars
  • Weekend Video: New Support For Hydropower
  • Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • WEEKEND VIDEOS, August 24-26:
  • Happy One-Year Birthday, Inflation Reduction Act
  • The Virtual Power Plant Boom, Part 1
  • The Virtual Power Plant Boom, Part 2

    Monday, November 19, 2012

    TODAY’S STUDY: SMART GRID WHEELING AND DEALING LOOKED UP IN Q3

    Smart Grid Funding and M&A Q3 2012 Report

    October 2012 (Mercom Capital Group)

    Introduction

    Smart grid venture capital (VC) funding showed some signs of life in Q3 2012 with $238 million in 12 deals. The rise in funding was mostly due to $136 million raised by Alarm.com, a security and home automation company. VC funding in the last three quarters had been relatively weak (Q4 2011 - $66M/10 deals, Q1 2012 – $62M/10 deals, Q2 2012 - $66M/9 deals), whereas VC funding even without the Alarm.com transaction exceeded $100M this quarter.

    The top five deals this quarter included $136 million raised by Alarm.com from ABS Capital Partners, Equis Capital Partners, NJTC Venture Fund, and Technology Crossover Ventures; GridPoint, an energy management company raised $23.3 million (investors undisclosed); Viridity Energy, a demand side management solutions company, raised $15 million from Mitsui; Space-Time Insight, a geospatial information systems company, raised $14 million from EnerTech Capital, Novus Energy Partners, ClearSky Power & Technology Fund, Opus Capital Ventures and Start Up Farms International; and SIGFOX, a wireless connectivity solutions provider for smart metering, building intelligence and M2M among other markets using ultra narrow band technology, raised $12.6 million from Intel Capital, Elaia Partners, Partech Ventures International and iXO Private Equity.

    Twenty-two different investors participated in 12 VC deals in Q3 2012, but only EnerTech Capital was involved in multiple deals (two).

    Merger & Acquisition (M&A) activity in Q3 2012 totaled $2.2 billion in five transactions. Top M&A transactions were the $2 billion acquisition of Vivint, a security and home automation services company, by Blackstone, and the $183 million acquisition of smart grid and automation solutions provider ZIV Group by electrical transmission and distribution equipment company Crompton Greaves.

    Two major transactions this quarter -- $136 million raised by Alarm.com and the acquisition of Vivint for $2.2 billion by Blackstone Group -- is part of a growing trend in the United States and UK where home security companies have expanded into home automation either by leveraging their existing customer base or through acquisition.

    Apart from Vivint and Alarm.com, other companies in the home security/home automation business that were involved in funding and M&A deals in the last few years include AlertMe, Intamax Systems, Control4, iControl Networks, Home Automation, APX Alarm and Xanboo.

    With a built-in customer base, these companies have expanded their services to provide home automation including everything from interactive home security and monitoring, home energy management (appliances and electronics) and control, and even automated home health services to solar lease services. Vivint for example, through its Vivint Solar division has entered the solar lease business, is again leveraging its existing customer base and moving further from energy management to include generation.

    We may continue to see transactions in this niche where security, cable & telecom companies expand their offerings to cover the whole “Connected or Digital” home services which would include everything from communication and automation services to solar installation. We will also be watching for strategic M&As in this area as companies look to add service and technologies needed to compete.

    2011-12 (YTD) Smart Grid Funding and M&A

    Top acquirers with multiple deals in 2012 year to date: McWane Technology (Nighthawk and Synapse Wireless), Eaton (Cooper Industries and Gycom (Business Units in Sweden, Denmark and Finland), Siemens (Senergy Sistemas de Medicao and RuggedCom), Itron (SmartSynch and C&N Engineering’s GasGate Technology).

    Top acquirers with multiple deals in 2011: Schneider Electric (Telvent, Summit Energy, Viridity (DCIM technology), ABB (Power Corp, Epyon, Obvient Strategies), GE (FMC-Tech, Remote Energy Monitoring, SmartSignal Corporation), Alstom (Utility Integration Solutions, Psymetrix), Ameresco (Energy & Power solutions, Applied Energy Group) and EnerNOC (Energy Response, M2M Communications).

    Top acquirers with multiple deals in 2010: ABB (Insert Key Solutions, Ventyx), EnerNOC (Global Energy Partners, SmallFoot), GE (Opal Software, SNC-Lavalin (ECS Business, Network Management, Control Software), Honeywell (E-mon, Akuacom), Navigation Capital Partners (LEPService, Specialized Technical Services), Siemens (Site Controls, QuickStab (Software Package) - (SCS Info Tech)…

    VC Funding by Quarter

    VC funding in Q3 2012 amounted to $238 million in 12 deals. By comparison, funding in Q3 2011 was $97 million in 10 deals and Q2 2012 was $66 million in nine deals.

    VC Funding by Technology 2011-2012 (YTD)

    Looking at 2011 to 2012 year-to-date, Smart Grid Communication Technology companies have received the most funding as a technology group followed by Grid Optimization, Advance Meter Infrastructure (AMI) companies and Demand Response companies.

    VC Funding by Stage

    The average deal size in Q3 2012 was $19.8 million compared to $7.3 million in Q2 2012.

    The spikes in the chart below for average VC deal size were due to some larger deals: Q2 2010 - (Landis+Gyr $165M; OpenPeak $52M) Q3 2010 - (Trilliant $106M; Nexant $43M) Q4 2010 - (OPower - $50M; AlertMe $24M; Ice Energy $24M; Tendril $23M) Q3 2011 - (Six deals out of 10 in Q3 were for $10 million or more) Q3 2012 – (Alarm.com $136M; GridPoint $23.3M) *The average deal size shot up considerably from $7.3 million in Q2 2012 to $19.8 million in Q3 2012, primarily due to the $136 million Alarm.com deal. Without the Alarm.com transaction, average VC deal size was $9.3 million.

    Top 5 VC Funding Deals

    The top VC deal in Q3 2012 included $136 million raised by Alarm.com, a security and home automation company, and $23.3 million raised by GridPoint, an energy management company. Other top deals included $15 million raised by Viridity Energy, a demand side management solutions company, $14 million raised by Space-Time Insight, a geospatial information systems startup and $12.6 million raised by SIGFOX, a wireless connectivity solutions provider for smart metering, building intelligence and M2M among other markets using ultra-narrow band technology.

    VC Activity by Country

    The United States accounted for more than half of total VC funding raised: $221 million in nine deals…

    Mergers and Acquisitions (M&A)

    Top M&A transactions in Q3 2012 included the $2 billion acquisition of home automation-plus-solar player Vivint by Blackstone, and the $183 million acquisition of smart grid and Automation Solutions provider ZIV Group by electrical transmission and distribution equipment company Crompton Greaves. Other M&A transactions included the acquisition of Home Automation Inc. by Leviton; the acquisition of majority stake in Nighthawk, a wireless smart grid solutions provider, by McWane Technology and the acquisition of Synapse Wireless also by McWane Technology, all with M&A transaction details undisclosed…

    0 Comments:

    Post a Comment

    << Home