Ormat To Acquire Viridity Energy Assets, Expand Into Demand Response, Storage

Geothermal and renewable energy developer Ormat Technologies, Inc. announced that it has entered into a definitive agreement to acquire substantially all of the business and assets of Viridity Energy, Inc., a privately held company specializing in demand response, energy management and energy storage, in a cash transaction

Initial consideration for the acquisition is $35 million, which will be paid at closing and is subject to adjustment in certain cases. Additional contingent consideration will be payable in two installments upon the achievement of certain performance milestones measured at the end of fiscal years 2017 and 2020.

Ormat expects Viridity to generate a positive operating income in 2017.

The acquisition, which is expected to close early 2017, will mark Ormat’s entry into the growing energy storage and demand response markets

Founded in 2008, Viridity has under contract over 850 MW across 3,000 sites, including management of a portfolio of non-utility storage assets located in the northeastern US with over 80,000 operational market hours.

"This is an important strategic acquisition which combines Viridity’s technology, its customer base, its highly experienced leadership team and employees that have in-depth knowledge and significant expertise in the demand response and energy storage and its presence in key North American markets together with Ormat’s skills, resources, engineering strengths and access to capital," said Isaac Angel, Ormat’s CEO.

"Ormat intends to use the Viridity platform to accelerate long term growth, expand its market presence, and further develop Viridity’s demand response VPower software platform and energy storage services. Ormat will continue to provide services and products to existing customers, while expanding into new geographies and targeting a broader potential customer base," Angel said

Upon closing of the acquisition, expected in early 2017, Viridity will continue operations and retain current management and staff, as well as maintain all customer relationships and agreements.

"Ormat’s long-term vision is to evolve from a recognized leader in the geothermal industry to a leader in the broader renewable energy market," said Angel. "Establishing capabilities in the energy storage markets is a key element in realizing Ormat’s vision, as these capabilities will enable Ormat to provide a complete solution to customers. The acquisition will enable Ormat to become a significant player in the growing energy storage and demand response markets and to diversify its traditional customer base with new commercial and industrial (C&I) customers as well as utility customers, particularly in the energy storage markets."

Ormat Technologies, Inc. is engaged in geothermal and recovered energy generation (REG)