PowerSecure, a provider of various energy related services, is investing as much as $15 million in a data center energy services business group.
PowerSecure (NYSE: POWR) said early Tuesday that it had acquired the group from Power Design in a deal worth $13 million in cash. The business group offers electrical infrastructure design through commissioning services.
Another $2 million could be paid if certain benchmarks in performance are met.
Neither company is a stranger to each other. PowerSecure already provided some services to PDI.
PDI, which launched in 1989, is based in Florida.
According to PowerSecure, the PDI business produced some $24 million in revenue with some $7.8 million in pretax operating income. Even so, PowerSecure said it expects the deal will be “slightly dilutive” in the fourth quarter of this year before become “meaningfully accretive” to earnings next year.
“The data center energy services business of PDI has established itself as a market leader in designing and delivering electrical infrastructure for data centers and we are very excited to add this capability to our portfolio,” said Sidney Hinton, chief executive officer of PowerSecure, in a statement.
“PowerSecure has served as a supplier providing our data center solutions to PDI and we believe by adding their direct customer channel and capabilities we have the potential to accelerate our access to key data center decision makers who are designing and evaluating backup power and control systems for their facilities.”