PowerSecure just announced that it has acquired a majority interest in Innovative Electronic Solutions Lighting, LLC as part of an effort to further the growth of its EfficientLights LED lighting business. The acquisition will allow Powersecure to develop new products more effectively and get them out on the market faster.
To complete the acquisition, PowerSecure paid $4.4 million in cash for a 2/3 controlling interest in IES. The remaining 1/3 of shares are owned by IES’ management team, and PowerSecure has the option of taking the remaining 1/3 interest as its own by issued PowerSecure shares to replace the shares owned by the management team.
PowerSecure used a similar agreement to acquire EfficientLights, and it plans to issue shares to take complete control of the remaining 1/3 of that company, making it a wholly-owned subsidiary.
In a press release, Sidney Hinton, CEO of PowerSecure, commented on the acquisition:
“We are extremely excited about the acquisition of IES and the IES team’s ability to significantly enhance our ability to rapidly deliver new lighting products to the marketplace. The IES team is extraordinary at developing innovative LED lighting products that deliver strong returns on investment and superior lighting quality, and their tremendous talents are highly complementary to our EfficientLights business. Additionally, we are very pleased to announce our plan to exercise the option to purchase the remaining one-third interest in EfficientLights. In addition to being highly accretive, our plan to complete this transaction is an acknowledgement of the strong success of the EfficientLights product, and our confidence in its future growth. We are energized by these investments, and looking forward to the benefits they provide as we continue to develop our LED lighting capabilities and business as a significant growth driver for our future.”