EnerNOC, a company that sells software to businesses for lowering their energy bills, said on Monday that it has bought energy consulting firm MDEnergy for $7.9 million in cash and stock.
MDEnergy, based in Stamford, Conn., provides consulting and market information to large energy buyers looking for competitive bids in deregulated markets, according to an EnerNOC representative. The company organizes request for proposals and hosts auctions where suppliers bid on both electric and gas contracts.
The company also provides detailed industry data on usage patterns to aid in contract proposals. MDEnergy's platform will operate independently in the near future, the EnerNOC representative said.
EnerNOC sells so-called demand response software that is designed to dial down energy consumption at large organizations. With the system, a company could, for example, automatically turn off unnecessary fans or turn up air-conditioner thermostats to avoid paying for pea-time electricity prices.
"It has been our vision to simplify the process of purchasing energy and green power solutions in restructured markets," said Tim Healy, EnerNOC's CEO, in a statement.
EnerNOC, founded in 2001 and based in Boston, went public earlier this year and is considered one of the most successful clean tech companies to launch in the past five years.