Power generator manufacturer Generac Holdings agreed yesterday to acquire Ecobee, a Canada-based smart thermostat producer backed by corporates Amazon, Carrier, AGL Energy and Just Energy, for up to $770m.
Generac will pay $200m in cash along with $450m in common stock to the current equity holders of Ecobee. Its shareholders may receive up to $120m in additional Generac shares upon achievement of certain performance targets between the close of the deal and June 30, 2023.
Founded in 2007, Ecobee has developed a smart thermostat equipped with voice control capabilities that can measure room temperature and detect how many people are in a room, as well as a wider suite of home monitoring products including smart sensors and cameras.
Ecobee’s earlier investors include energy provider Just Energy and temperature regulation technology supplier Carrier, which provided the company with undisclosed amounts of funding in 2012 and 2015 respectively, as well as Ontario Emerging Technologies Fund, JLA Ventures and Tech Capital Partners.
E-commerce company Amazon’s Alexa Fund, investment management firm Thomvest Asset Management and venture capital firm Relay Ventures backed Ecobee in a $35m series B round that closed in 2016.
The three returned for the $61m first close of a series C round in March 2018 that was led by private equity firm Energy Impact Partners and backed by Export Development Canada, Ontario Capital Growth Corporation, North Leaf Capital Partners, Tech Capital and GXP Investments.
The round was boosted to $97m three months later, when Ecobee raised $36m in an extension featuring power producer AGL Energy, Caisse de dépôt et placement du Québec and Business Development Bank of Canada.