Cogeneration firm Tecogen says it has entered into an agreement to acquire American DG Energy.
Tecogen says that it will get the flexibility to market to organizations without the financing, sufficient capital or the desire to own equipment. The combined firm also will have a stable revenue base and will save about $1 million by integrating overhead functions of the two companies.
The terms are that Tecogen will exchange 0.092 share of its common stock for every outstanding share of American DG’s. The deal is expected to close during the first half of 2017, according to the press release.
In August, Tecogen sold an InVerde cogeneration system to Coney Island Development in Brooklyn, N.Y. The company said that three 100kW will be used in a multifamily residential building. The sale, worthy more than $500,000 will be outfitted with the company’s Ultera emission technology and microgrid control software. The systems are designed to work load balance and disconnect from the grid in case of a blackout.