PowerSecure International Inc. announced in mid-October that it had acquired the data center energy services business of Power Design Inc.
PDI's data center energy division brought in over $24 million in revenue last year after being launched in 2010. It has experienced a growth rate of between 35 and 40 percent. PowerSecure bought the business for $13 million in cash, as well as the potential for an extra earn-out payment of up to $2 million. PowerSecure expects the deal to further its penetration into the data center market.
"By acquiring PDI's data center business, we have immediately bolstered our credibility with data centers and end use customers, and we've added exceptional data center sales talent with direct data center relationships," said PowerSecure CEO Sidney Hinton.
Power Design Inc. is a family-owned, private company that provides commercial electrical contracting. The deal is expected to slightly dilute PowerSecure's earnings for the year, but expand them in 2015. Since July, PowerSecure has announced $215 million in new business, including $25 million announced just in October.
The acquisition is expected to add 20 employees to PowerSecure's 700-person operation.