News Tech: Wisconsin-based generator manufacturer Generac today announced plans to acquire Ecobee. It’s a somewhat surprising match at first glance, but it’s not the first time we’ve seen a more traditional company branch into the smart home space through this kind of acquisition, with Assa Abloy’s purchase of August Home coming a few years ago.
Last but not least, in the case of Generac, he is the easiest way for a company with over 60 years of history to start developing new technologies.
Nest eventually became Google’s de facto smart home brand. And like Nest, Ecobee has expanded to include other smart home devices such as surveillance cameras and sensors. Ecobee CEO Stuart Lombard said: statement. “I am very excited to join the Generac team so that together we can create a cleaner, more resilient and more sustainable energy future for our customers and communities.”
The company will pay his Ecobee shareholders $200 million in cash and $450 million in stock. If additional targets are met prior to closing, Generac will issue up to $120 million in additional shares for a total of up to $770 million. Toronto-based Ecoboee was founded in 2007 and has grown to become one of the leading companies in connected thermostats, alongside companies such as Nest, which it acquired in 2014.
Ecobee has raised approximately $150 million, including an investment from Amazon’s Alexa Fund. For a while, Amazon bought the company and seemed like a clear candidate to complement existing smart home brands like Ring, but recently it unveiled a Honeywell-developed thermostat.
The transaction is expected to close in the fourth quarter, subject to regulatory approvals.
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