March 3 (Bloomberg) -- Johnson Controls Inc., a Milwaukee-based developer of energy management technology, agreed to pay about $32.3 million to acquire EnergyConnect Group Inc. to expand its building efficiency capabilities.
Under the cash deal announced today, Johnson Controls will buy all of EnergyConnect’s outstanding shares for 22.53 cents each, a 75 percent premium over yesterday’s closing price.
Johnson Controls, which has customers in 150 countries, said the acquisition will complement its building efficiency business.
“As our customers continue to demand more sophisticated capabilities to manage their energy costs, integrating demand-response services with energy efficiency makes EnergyConnect and Johnson Controls” a good fit, C. David Myers, president of Johnson Controls’ building efficiency unit, said in a statement.
EnergyConnect’s technologies provides real-time pricing information that commercial, institutional and industrial energy customers can use to manage their electricity consumption more efficiently. The Campbell, California-based company’s systems help clients participate in demand-response programs, which offer incentives for curtailing consumption during periods of peak demand.
The offer has been approved by EnergyConnect’s board, which recommended that shareholders approve the deal in a proxy vote anticipated in about four weeks. The sale is expected to close by July, according to Johnson Controls.
UBS Investment Bank was financial adviser and Orrick, Herrington & Sutcliffe LLP was legal adviser to EnergyConnect. Johnson Controls’ legal adviser was Godfrey & Kahn S.C.
Johnson Controls rose 34 cents to $40.58 at 3:20 p.m. in New York Stock Exchange composite trading. EnergyConnect rose 8 cents, or 63 percent, to 21 cents.
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