EnerNOC buys MDEnergy for $7.9M

Boston's EnerNOC (Nasdaq: ENOC), a provider of demand response and energy management solutions, said today it acquired Stamford, Conn.-based MDEnergy, an energy procurement service provider, for $7.9 million.

"It has been our vision to simplify the process of purchasing energy and green power solutions in restructured markets," said Tim Healy, CEO of EnerNOC.

"We look forward to a straightforward integration process and to quickly unlocking additional value for our expanded customer base together with MDEnergy."

EnerNOC said the purchase price is made up of 40 percent cash and 60 percent EnerNOC stock. The company said it plans to make additional cash payments in the first quarter of 2008 based on MDEnergy's performance through the end of this year.

"We're confident that our market intelligence, proven end to end process, and innovative technologies will help many of EnerNOC's existing customers reduce their energy supply costs," said MDE's founder and CEO Cliff Sirlin.

"In addition, we believe that many of our current customers are ideal candidates for EnerNOC's technology-enabled, turnkey demand response solutions."

EnerNOC said today's deal adds energy market intelligence as well as an online reverse auction technology platform, now called EnerNOC Exchange, to its services.

The company said MDEnergy currently serves more than 400 companies and institutions, including national accounts in the real estate, lodging, health care, manufacturing, and food services industries.

EnerNOC, which manages more than 500 megawatts of demand response capacity, uses its network operations center to remotely monitor utilities' energy assets and adjust their electrical use.