PowerSecure International, Inc. has acquired the data center energy services business of Power Design, Inc. (PDI). This business provides full turnkey electrical infrastructure design, implementation and commissioning service to data center owners.
Under the purchase agreement, PowerSecure paid PDI $13 million in cash, with the potential for an additional earn-out payment of up to $2 million.
"The data center energy services business of PDI has established itself as a market leader in designing and delivering electrical infrastructure for data centers and we are very excited to add this capability to our portfolio," said Sidney Hinton, chief executive officer of PowerSecure.
"PowerSecure has served as a supplier providing our data center solutions to PDI and we believe by adding their direct customer channel and capabilities we have the potential to accelerate our access to key data center decision makers who are designing and evaluating backup power and control systems for their facilities," Hinton added.
In the trailing 12-month period from the third quarter of 2013 through the second quarter of 2014, this business generated more than $24 million in revenue, resulting in approximately $7.8 million of pre-tax operating income for PDI. These results are subject to adjustment following the completion of an independent audit. PowerSecure expects the transaction to be slightly dilutive to earnings per share (EPS) in Q4 2014, and meaningfully accretive to EPS in 2015.
