FAQ on CESI’s Acquisition of EnerNex

CESI, a world-leading energy technology and innovation consulting company headquartered in Europe, and EnerNex announced a partnership through which EnerNex will be operating under the CESI umbrella.

The acquisition brings together two stable and profitable companies with complementary portfolios to provide utilities, energy investors and regulatory bodies around the world with engineering and consulting services related to cutting-edge, technology-driven energy solutions.

Click here to read the full press release. Hear from the companies’ CEOs about the acquisition.

Why did CESI acquire EnerNex?
CESI’s acquisition of EnerNex extends its portfolio of services in a strategic North American market. A number of new services anticipated to be offered to the US market through EnerNex include CESI’s extensive capabilities in owner’s engineering of complex HVDC, system studies, technical specifications and testing for smart metering, and renewable integration and interconnection. In addition, EnerNex’s highly qualified professionals, who provide top-quality services in grid modernization, cybersecurity, and power systems consulting, will gain unlimited access to best-in-class references and know-how as part of the CESI global network.
Is this CESI’s first acquisition of a North America Company?
Yes, it is.
Does CESI have further acquisition plans?
The North America electricity sector is a very dynamic market. Much of the world’s relevant innovation in this space has origins in the US. For this reason, CESI is interested in evaluating possible opportunities to enrich its portfolio of services and add value to the entire Company.
Will the current EnerNex executives remain involved in the new company?
Yes, the current executives will remain actively involved in running the business and, together with CESI, in fostering the Company’s growth. There are no plans to disrupt the current organization. The existing owners will continue to have a remaining stake in EnerNex.
Will EnerNex be changing its name?
EnerNex, is a strong brand in the North American market, and we will preserve this presence. EnerNex will become “a CESI company” in order to emphasize that there is something new: an enlarged portfolio for the US market, expanded competencies, access to new international markets, and stronger shareholder support to preserve and enhance the well-recognized EnerNex identity.
How will this acquisition effect the branding of the companies?
The choice of logo names both CESI and EnerNex specifically to highlight that CESI and EnerNex, together, will reinforce their skills and know-how. Thus, it is important to have a brand that leverages both identities (EnerNex, a CESI company).
Will the companies operate as separate divisions or will the organization be completely integrated?
In the US market, EnerNex will continue to act as in the past, but with a stronger and enlarged service offering to the benefit of its clients. We look at clients’ satisfaction, maximizing revenues synergies, employee retention and value creation.
How did this acquisition come about and why now?
CESI is interested in the North American energy sector and EnerNex is a solid and reputable player, having worked for many key US clients over its fifteen year history. During that time, EnerNex developed advanced skills that can be further leveraged by CESI to build an even stronger US presence. The combination of CESI and EnerNex portfolios bolsters planning, implementing, and operating power assets and electric infrastructures, offering our clients (utilities, energy investors, regulators, ISOs, TSOs, etc.) a one-stop-shop solution for all their needs related to energy transition challenges.
How large of a company is the new CESI, in terms of people, revenue and offices?
CESI is a large and structured organization with an important footprint in the energy sector thanks to projects in 40 countries around the world and subsidiaries in Germany, Brazil, Chile, Colombia and Middle East. The EnerNex acquisition will enrich the Company, above all, in terms of crucial professional skills.
How will the companies bridge the two cultures?
Both companies operate their businesses based on quality people and prize professionalism and entrepreneurship. Above all, client satisfaction drives both organizations. CESI and EnerNex have collaborated on a number of activities over the past two years and have found many compatibilities in the respective cultures.
Who will the new competitors be?
Overall, competitors will remain the same.
How does this acquisition signal economic growth and advancement of global grid modernization initiatives?
EnerNex and CESI are already leaders in grid modernization initiatives see tremendous efforts in developed economies toward grid modernization. EnerNex and CESI will combine US and European best practices and competencies in order to address the most complex challenges in the energy field. As an example, by 2020 all new homes in California will be required to have solar rooftop PV installed and EnerNex is already helping utilities in that state manage an increasing number of distributed energy resources connected to the network. Also, as sales of electric vehicles are projected to continue at an exponential rate of growth, CESI is providing guidance to an important global utility on understanding and optimizing the flexibility that these resources can provide to the network, and how to create financial value from it.
What does this mean for job growth and future expansion?
The acquisition aims at growing the size of the business, which creates a lot of professional opportunities (in the US and abroad) for current and prospective employees.
How will this acquisition impact suppliers?
Top-quality and efficiency-driven suppliers, who have the expertise, products and services that bring value to CESI and EnerNex, will benefit from expanded business opportunities deriving from CESI growth plan in North America.
Are there any potential negative perceptions of the acquisition?
No. The acquisition is a great opportunity for both companies to become stronger and increase their presence worldwide in current target market segments and possibilities for expansion into others, offering more sophisticated services regarding, for example, integration of renewable energy, smart meter deployments, microgrids, demand response services, cybersecurity activities, large interconnection and energy operational technologies with an even larger staff involved.
What is the main goal and mission of the acquisition?
It is our firm belief that together, EnerNex and CESI will provide the best services for existing and new clients. United, we have one mission: to help our clients win their energy transition challenges. This is an amazing opportunity for both Companies’ management teams and employees.