World Energy Solutions Acquires New England Energy Broker

World Energy Solutions, Inc. announced this morning that it has acquired Northeast Energy Partners, LLC (NEP), a privately held Enfield, CT-based energy management and procurement company, for approximately $7.9 million in cash plus an additional $5.2 million in seller notes and potential earn-outs.

"The acquisition expands World Energy's national footprint in the mid-market -- addressing the energy management needs of small and mid-sized businesses -- while increasing the Company's market share in New England," World Energy said.

"The deal also creates a significant cross-sell opportunity for World Energy, opening the door for the Company to deliver its energy efficiency services to NEP's 2,000+ customers in Connecticut and Massachusetts," World Energy said.

World Energy said that Northeast Energy Partners, founded in 2000 in response to natural gas and electricity deregulation in the Connecticut and Massachusetts markets, has established itself as one of the top energy brokerages in New England, specializing in the needs of small and mid-size businesses.

With annual revenues topping $5 million, Northeast Energy Partners currently employs 17, all of whom will be retained by World Energy. The company will continue to operate in Enfield.

"NEP is a perfect strategic fit for us," said Phil Adams, CEO of World Energy Solutions. "The acquisition advances our goal of becoming the national leader in energy procurement for the mid-market segment, building on our purchase last year of GSE Consulting. The deal also brings us a roster of new customers in utility territories with active incentive programs where we can cross-sell our energy efficiency services. By helping clients lower the price they pay for energy, reduce the amount they consume, and maximize available incentives, we are providing a winning formula for lowering total energy cost."

Added Jim Parslow, CFO of World Energy Solutions: "With the purchase of NEP, we are continuing to execute our growth strategy, supplementing strong organic growth with the acquisition of profitable, cash-generating companies that have predictable revenues and cash flows. Buying companies with these attributes allows us to use their cash flows to fund earn-outs and other considerations. We are financing this deal primarily with debt to minimize shareholder dilution, and we expect our purchase to be accretive and to have a positive impact on our top-line revenue, EBITDA and backlog."