Smart Grid VC, M&A Activity Reach Highest Levels Ever In 2010

by Renew Grid on Thursday 20 January 2011

Smart grid venture-capital (VC) funding and mergers and acquisitions (M&A) activity reached new heights in 2010, according to data released by Mercom Capital Group LLC. VC funding in the smart grid sector was at its highest, with $769 million in 51 deals, representing an 88% increase over 2009. Top smart grid VC transactions included the $165 million raise by Landis+Gyr, the $106 million raise by Trilliant and the $52 million raise by OpenPeak. M&A activity was also robust for the smart grid sector, with 40 transactions, including the acquisition of Ventyx by ABB for $1 billion. "It was a banner year for smart grid in terms of VC funding and M&A activity, with VC funding almost doubling compared to 2009," says Raj Prabhu, managing partner at Mercom Capital Group. “Eighty-seven different investors participated in VC rounds in 2010.” The solar and wind sectors also saw VC and M&A growth in 2010. Activity increased in large-scale solar project funding, debt and other funding types, pointing to an ease in the availability of credit after a challenging 2009. Solar M&A transactions in 2010 totaled $2 billion in 44 deals. The wind sector saw a 40% increase in VC and PE activity in 2010, with $277 million invested, compared to $198 million in 2009. Large offshore wind projects boosted project funding activity to over $9 billion in 2010. M&A transactions in the wind sector came to $1.3 billion in 23 deals, with the $860 million acquisition of John Deere Renewables by Exelon constituting the bulk of it. SOURCE: Mercom Capital Group LLC