SPOKANE, Wash., March 5, 2003 — Itron Inc. announced that it has completed the acquisition of Silicon Energy for a total consideration of $71.2 million.
Silicon Energy is a leading provider of enterprise energy management software solutions that enable utilities, energy service providers, state and local government, and large energy users to efficiently manage and apply energy consumption data and rate information, optimize the delivery and use of energy, mitigate risk, control energy costs, and optimize energy procurement.
Silicon Energy software enables utilities to streamline the process of collecting, validating, and warehousing meter information; calculate and validate bills; optimize distribution assets; improve customer service; and manage peak demand.
For large commercial and industrial energy users, Silicon Energy software uses billing, metering, production and weather information from multiple, geographically dispersed sources to forecast and budget energy consumption, allocate costs, and control overall energy demand and costs. In addition to software, Silicon Energy offers a comprehensive selection of professional and support services to its customer base.
The $71.2 million in consideration includes payment for the outstanding shares of stock of Silicon Energy, repayment of approximately $4.2 million in convertible debt, and other consideration.
Itron will finance a portion of the purchase price with a $50 million term bank loan, which will bear interest of approximately 4.5% per year, and will be payable over three years. During the last week of February, Silicon Energy signed two important EEM Suite software license agreements with a large regulated electric and gas utility and with a Fortune 10 manufacturer.
The $1.3 million utility order was placed for Silicon Energy’s Distribution Asset Optimization solution, while the EEM order will support the manufacturer’s financial management, operations and procurement initiatives on a global basis to assist in lowering operating expenses and mitigating risk.
Commenting on these orders, LeRoy Nosbaum, Itron chairman and CEO said, “Receiving these big wins is a great start to this acquisition. We are delighted with the interest we are seeing in our distribution asset optimization solutions and the growing acceptance of enterprise energy management with large energy users.”
“With the acquisition of Silicon Energy, we now have a knowledge platform that makes it easy for our customers to gather, manage, and exchange relevant data among all market participants – both within the utility and outside the utility operation,” said Nosbaum.
“Itron’s knowledge platform provides the information our customers need to reduce costs, defer capital expenditures, maximize the use of existing assets and resources, integrate their systems and operations, and optimize their reliability and efficiency.”
Itron is a technology provider and critical source of knowledge to the global energy and water industries. More than 2,800 utilities worldwide rely on Itron technology to deliver the knowledge they require to optimize the delivery and use of energy and water.
Itron delivers value to its clients by providing industry-leading solutions for meter data collection, energy information management, demand side management and response, load forecasting, analysis and consulting services, transmission and distribution system design and optimization, web-based workforce automation, commercial and industrial customer care and residential energy management.
Itron’s web site can be found at www.itron.com
Additional information about Silicon Energy can be found at www.siliconenergy.com.