US tech giant Cisco has agreed to acquire German-American energy-management platform JouleX for $107m to “extend its Internet of Things capabilities”.
JouleX, founded in Munich in 2009, makes software for companies to easily measure and control the energy use of all their network-connected devices, which it claims can cut energy costs by up to 30 per cent. It is headquartered in Atlanta with additional offices in the US plus Shanghai, Tokyo, Paris, Munich and Kassel, Germany (home to its R&D operations).
The acquisition – $107m in cash and retention-based incentives – is expected to close by the end of fiscal year 2013. JouleX’s team will then join Cisco’s Industry Solutions Group.
“JouleX’s technology will strengthen Cisco Services’ Smart Offerings and compliments our evolving services strategy. It extends our ‘Internet of Things’ capabilities and is a good alignment to Cisco EnergyWise,” Cisco Industry Solutions senior VP Faiyaz Shahpurwala said in a statement. He alluded to the massive rise in network and data load as connected and mobile devices take off.
The companies have paired their respective JouleX Energy Manager and Cisco EnergyWise products together since at least 2011.
In January, JouleX reported 100 new customers in the last year bringing its total client base to 250, including enterprise giants such as BMW, Sony, Coca Cola, Equifax and Deutsche Telekom. Its last round of investment funding – $17m – took place in 2011.
energy: flickr user epSos.de