Blue Earth Inc., engaged in clean technology through product and services designed to reduce harmful emissions, has inked a deal to acquire Xnergy, a California-based energy services company, for $18.5 million.
“Working in concert with Blue Earth will enable Xnergy to leverage our engineering, implementation and project finance experience and capabilities to expand our energy asset development and management services to address our $500 million pipeline of projects for industrial, commercial and public sector clients, who want to minimize their long-term energy costs by adopting innovative alternative energy technologies,” Jason Davis, co-founder and president of Xnergy stated in the press release.
Xnergy’s broad range of comprehensive energy solutions includes the design and implementation of energy savings projects, energy conservation, energy infrastructure outsourcing, power generation and energy supply and risk management by implementing alternative energy technologies such as fuel cells, solar and geothermal. Xnergy also offers maintenance and service programs such as heating, ventilation and air-conditioning (HVAC), mechanical systems for design-build to repair and retrofit services.
Xnergy reported profitability on revenue of approximately $15 million in 2009 and $18 million in 2010. The company has forecast 2012 revenue to more than double over 2010 revenue.
“Blue Earth is excited about Xnergy and the broad range of comprehensive energy solutions it brings to the Blue Earth platform,” Dr. Johnny R. Thomas, CEO of Blue Earth stated. “The Xnergy model enables Blue Earth to develop and own on-site power production facilities with long-term power purchase agreements from commercial clients.”
Dr. Thomas said that Blue Earth’s position as a public company provides it with an accelerated path for the financing and installation for Xnergy’s $500 million pipeline of projects, which will allow Blue Earth recognize recurring revenue from the acquisition.
Blue Earth will complete the transaction through 4.5 million of its restricted shares of common stock valued at $3 per share, cash of $2.0 million, and a promissory note of up to a $3 million maximum, which will be determined prior to signing a definitive agreement.
For more information visit www.blueearthinc.com