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ESCO Buys Energy Software Vendor Nexus
ESCO Technologies (Nasdaq ESE) -- a $400 million mini-conglomerate selling filtration, power-line communications and radio frequency (RF) shielding systems -- has purchased Nexus Energy Software for $28.5 million in cash plus prospective contingency payments.
The logic of the deal relates to ESCOís communications capabilities: its DSCI subsidiary manufactures systems that permit electric utilities to communicate with meters at the userís site through the existing power line, thereby avoiding the build-out of separate automated meter-reading (AMR) data channels. Power-line communications technology has been a long-time coming but now finally appears to be gaining market traction.
Nexus, a $10 million vendor of meter-reading and customer analysis software for utilities, will therefore add value to ESCOís communications solution. Last year, on behalf of consultancy ICF, Kuhn Capital had initiated the sale of the ICF subsidiary ESI, to Nexus. ESI was in the business of furnishing software to utilities that facilitated electricity demand analysis, asset management and complex billing calculations.
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