Viridity Energy Inc., a privately held Philadelphia company that provides energy management and storage services, announced Tuesday that it will be acquired by Ormat Technologies Inc., a global geothermal- and renewable-energy company based in Reno, Nev.
Viridity, founded in 2008 and with offices in Center City, uses proprietary software to help companies manage their power consumption to take advantage of wholesale electricity markets. The acquisition marks Ormat’s entry into the energy-storage and demand-response markets.
Ormat, a publicly traded company with a market cap of $2.6 billion, will give Viridity the muscle to carry out “significant growth plans,” said Mack Treece, Viridity’s chief executive.
The company, which employs 30 people, will retain its current management team and continue to operate in Philadelphia under the Viridity name, said Treece.
Viridity will have access to the parent company’s technical and engineering teams and aspires to become more closely involved in project development, he said, adding that Ormat’s operations overseas will allow Viridity to expand to international markets.
The acquisition price of $35 million is subject to adjustment depending upon the achievement of certain performance milestones measured at the end of fiscal years 2017 and 2020, according to Ormat.
Viridity is owned by private equity firms AltEnergy LLC and Braemar Energy Ventures. The firms said in a statement that the sale price gave them “a positive return on their capital,” which may increase if Viridity achieves the performance milestones.