Strategic energy management solutions company Advantage IQ, is to acquire The Loyalton Group.
The Loyalton Group is headquartered in Minneapolis, MN, and has additional offices in Washington, DC and Houston, TX. The company provides energy procurement and price risk management solutions. The Loyalton Group is strong in the hospitality industry, with a particular presence in the multi-family, senior living, education and food service sectors.
Under the terms of the acquisition agreement, The Loyalton Group, with revenues in excess of $7.5 million for the 12 months ending Sept. 30, 2010, will become part of Advantage IQ. The transaction will be funded entirely by Advantage IQ and is expected to be slightly accretive to earnings in 2011. The transaction is expected to close before Jan. 1, 2011, and is subject to customary closing conditions.
Commenting on the acquisition, Jeff Heggedahl, president and chief executive officer of Advantage IQ, said, “This acquisition shows further progress in our strategy to expand market share, while continuing to provide clients with a deep bench of expertise to help them manage energy consumption and reduce costs.”
He continued, “The Loyalton Group has a roster of world-class clients. Their proven ability to secure aggressive energy pricing and develop unique risk management solutions will augment Advantage IQ’s well-established procurement services for its clients, many of which are Fortune 1000 companies.”
Services offered include utility expense management, energy procurement and price risk management, facility optimization and sustainability consulting. To support its national client base, Advantage IQ plans to maintain The Loyalton Group regional offices in Minneapolis, Minn., and Washington, D.C. Advantage IQ’s Heggedahl will continue to lead the organization, and Loyalton co-founders Michael R. Vaughan and Martin B. Sieh will assume roles on Advantage IQ’s senior leadership team.
“Advantage IQ is a leader in the energy management space, and we are thrilled to be joining this outstanding group of professionals,” said Michael R. Vaughan, chief executive officer of The Loyalton Group. “The combined strength of both organizations will create opportunities for clients to further reduce expenditures, manage risk and leverage their sustainability initiatives for a competitive advantage.”
With this acquisition, Advantage IQ continues to build upon its already significant position in the industry, growing its valuable electric usage database of more than 25,000 MW of commercial and industrial load.
Advantage IQ is a subsidiary of Avista Corp. (NYSE: AVA)
USA, Spokane & Minneapolis, MN
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