The US-based firm plans to combine ecobee’s technologies with its power generation, energy storage, and energy management devices in order to create a home energy ecosystem that is clean, efficient, and reliable
Ecobee is a manufacturer of smart thermostats and home monitoring products. (Credit: ecobee)
Generac, an energy technology solutions provider, has agreed to acquire ecobee, a Canada-based smart home solutions firm, in a cash and stock deal valued up to $770m.
Established in 2007, ecobee provides various Energy Star-certified thermostats and a suite of home monitoring products.
The company’s smart thermostats are said to optimise heating and cooling systems to help homeowners make significant energy savings. The smart thermostats are designed to learn and adapt to the users’ schedules for delivering improved comfort and reducing energy usage.
Ecobee is claimed to have served more than two million connected homes across North America, enabling them to save a combined 20TWh of energy.
The company has a workforce of more than 500 people around the world.
Generac, which is based in Wisconsin, offers backup and prime power systems, solar plus battery storage solutions and advanced power grid software platforms among others.
Generac president and CEO Aaron Jagdfeld said: “Residential HVAC systems represent the largest energy-consuming device in the home today and ecobee’s smart thermostats and sensors offer the most intelligent way to balance comfort with conservation.
“In addition, the ability to combine ecobee’s cutting-edge technologies with Generac’s power generation, energy storage and energy management devices will allow us to create a clean, efficient, and reliable home energy ecosystem that will not only save homeowners money, but also help grid operators meet the challenges of an electrical grid under enormous stress by providing solutions to better balance supply and demand.”
As per the terms of the deal, Generac will pay ecobee $200m in cash plus $450m worth of shares of the company. In addition to that, the Canadian firm will be entitled to be issued up to $120m worth shares of Generac, based on meeting certain performance targets between the closing of the deal and 30 June 2023.
Ecobee founder and CEO Stuart Lombard said: “Generac’s evolution into an energy technology solutions company creates many opportunities to integrate our ecobee products with their residential device offerings, enabling direct monitoring and control of a significant portion of the home’s electrical load.
“We are excited to join the Generac team so together we can deliver a cleaner, more resilient and sustainable energy future for our customers and communities.”
The deal, which is subject to customary closing conditions, is anticipated to close during Q4 2021.