M&A Activity Amps Up In The Growing Energy Management Space

Energy management has returned to the front of mind for corporate facilities managers as decarbonization pressures grow, energy prices increase, and the technology landscape expands. As a result, the first few weeks of 2022 have seen a wave of M&A activity in the energy management space for buildings as technology firms look to improve their competitive positioning in this expanding market.

On January 6th, Dude Solutions, a facilities management software provider, acquired Energy Profiles Limited (EPL) to boost its energy and sustainability data analytics and reporting capabilities. Five days later, on January 11th, IBM announced the acquisition of Envizi, an environmental performance and energy data management software provider. IBM will integrate Envizi within its Maximo, Sterling, Environmental Intelligence Suite, and Turbonomic and Red Hat OpenShift product offerings to help customers obtain, consolidate and report ESG data. Building and energy technology provider, Schneider Electric, announced the acquisition of Zeigo on January 13th. Zeigo is a software platform that assists customers in sourcing renewable energy for their facilities and operations through power purchase agreements (PPAs). These acquisitions reflect the move towards data-driven energy management strategies and the rapid growth of the corporate PPA market.

Verdantix predicts that over the next five years, the energy and sustainability management market growth will continue to outstrip other building technology segments fuelled by decarbonization initiatives and sustainable building reporting requirements. In our 2021 global corporate survey, decarbonizing building portfolios was the most or second most important objective for 55% of respondents. Building technology firms need to consider their existing product line-ups and ensure they can help their customers along the path towards net-zero facilities.

SB MA Activity Amps Up In The Growing Energy Management Space

Ben Hext

Analyst, Verdantix

Ben is an Analyst in the Verdantix Smart Buildings practice. His current agenda covers hardware and software solutions for energy management, on-site power generation, and COVID-19 mitigation management. He holds an M.Eng in Mechanical Engineering from Durham University.