January 4 (SeeNews) – US geothermal company Ormat Technologies Inc (NYSE:ORA) said on Tuesday it has struck a deal to take over Philadelphia-based demand response and energy storage firm Viridity Energy Inc.
The targeted business uses proprietary software to serve primarily retail energy providers, utilities, and large industrial and commercial customers. Currently, it has under contract more than 850 MW across 3,000 sites. This includes the management of a portfolio of non-utility storage assets in the northeastern US with over 80,000 operational market hours.
“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,” said Isaac Angel, Ormat’s CEO. He added that in the long term the company would seek to expand in the broader renewable energy market and not just in the geothermal sector.
Under the terms of the deal, Ormat will pay an initial price of USD 35 million (EUR 33.6m) for Viridity and may provide additional payments upon the achievement of certain performance milestones. The transaction is expected to close early this year.
Ormat noted it anticipates Viridity to generate a positive operating income in 2017.
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