Siemens Industry's Building Technologies division has acquired Pace Global, a U.S.-based energy service provider. Pace Global's expertise enables Siemens to substantially expand its portfolio of sustainability and energy management services for companies and cities. The parties agreed not to disclose the purchase price.
Pace Global's business model combines strategic corporate consulting with energy procurement and CO2 management. The company advises enterprises in all matters pertaining to energy strategy and the associated risks, particularly in free energy markets. It offers a comprehensive range of services related to energy supplier markets from digitization and validation of gas, water and electricity bills to risk-based services for energy purchasing, including market analyses, rate comparisons, contract negotiations and hedging support, as well as strategic consulting mandates. Pace Global's knowledge of global energy markets, as well as its commercial solutions and services, are a suitable addition to Siemens' sustainability and energy efficiency portfolio Pace Global will be integrated into Siemens' Building Technologies division as a separate operating unit, with the current CEO, Timothy Sutherland, remaining at the helm after the acquisition. Managers and employees are also expected to keep their jobs.
Harry Forbes, of ARC Advisory Group, commented, "Siemens is grabbing a small energy consultancy, but one with deep expertise in energy management, procurement, renewable development and energy finance. This acquisition is quite reminiscent of Schneider Electric's acquisition of Summit Energy 11 months ago. In both cases, the firms are orders of magnitude different in size, with the acquired being highly specialized, and the acquirer a broad generalist. Their key to success is not to slay the goose."