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Smart home and security company Alarm.com plans to announce on Friday that it has acquired energy efficiency startup EnergyHub. Terms of the deal were not disclosed.
The move shows how energy efficiency services sold to utilities and energy providers are becoming an increasingly attractive business. The news follows the announcement earlier this week that smart thermostat company Nest acquired an energy data company called MyEnergy.
Alarm.com is a Virginia-based 13-year-old company that makes wireless security and energy management systems that use cellular networks and mobile apps to enable customers to manage their homes. The security systems have connected video cameras, and door, window and cabinet sensors, while the home management system has connected thermostats and controllable lighting.
Alarm.com says it has at least 1 million subscribers for its services, and has a partnership with Verizon Wireless to use its network. Verizon is interested in renting space on its network for so-called machine-to-machine services.
EnergyHub, founded in 2007 and based in Brooklyn, sells software that powers the management of connected thermostats and helps utilities conduct energy efficiency services like demand response. Demand response is when power companies collectively turn down heating and cooling during peak energy times, like a hot summer afternoon. EnergyHub says it expects to have over 200,000 thermostats under management by the end of the year (the company said it had 100,000 under management back in January 2012).
EnergyHub pivoted a couple years ago and previously the company sold a line of connected energy gadgets, including a high-end energy dashboard product. Stand-alone energy dashboards haven’t taken off, particularly high-end ones. EnergyHub raised at least $18 million from investors including Acadia Woods, New York City Investment Fund, .406 Ventures and Physic Ventures.