RESTON, Va. - ICF (NASDAQ:ICFI), a global consulting and digital services provider with a market capitalization of $2.17 billion, has completed the acquisition of Applied Energy Group (AEG), a prominent energy technology and advisory services firm, from Ameresco (NYSE:AMRC). The transaction, announced today, enhances ICF's capabilities in utility management and state and local government sectors.
AEG, known for its demand-side management (DSM) technology platform and advisory services, aids utilities and governments in managing energy efficiency, demand response, and load management. Their cloud-based solutions offer real-time analytics crucial for grid reliability and affordability.
The acquisition comes as ICF continues to perform strongly in the commercial energy market, with utility clients increasingly utilizing its services for energy efficiency and grid resilience. AEG is expected to generate about $30 million in annual revenue in 2024, with projections of at least mid-teens growth in 2025. The transaction is also immediately accretive to ICF's Non-GAAP EPS. According to InvestingPro data, ICF currently generates annual revenue of $2 billion with a healthy gross profit margin of 36.6%.
John Wasson, ICF chair and CEO, stated that the acquisition aligns with ICF's strategy to bolster its energy markets advisory and technology services. "Together, we'll build on that momentum and create incremental revenue synergies as we address top-of-mind energy challenges with our clients," he said. InvestingPro analysis indicates ICF is currently trading near its 52-week low, with multiple ProTips suggesting potential value opportunity. Subscribers can access the comprehensive Pro Research Report for detailed insights into ICF's financial health and growth prospects.
Ingrid Rohmund, president and general manager of AEG, expressed confidence in the combined team's ability to expand revenue and reach. George Sakellaris, President and CEO of Ameresco, noted the divestiture allows Ameresco to concentrate on its core businesses and growth opportunities.
Ameresco, a leader in clean technology integration and renewable energy, will continue to focus on its project, asset, and operations and maintenance businesses. Canaccord Genuity served as the exclusive financial advisor to Ameresco for this transaction.
This news is based on a press release statement.
In other recent news, ICF International (NASDAQ:ICFI) has been making significant strides in its financial performance and business operations. The company reported a 6% year-on-year increase in revenue from continuing operations during its Q3 earnings call, which rose to 10% after accounting for pass-throughs. Moreover, ICF International raised its full-year EPS guidance by $0.35, now ranging from $6.05 to $6.15.
Truist Securities maintained a Hold rating on ICF International, emphasizing the company's potential to secure contracts for disaster recovery and mitigation. The firm anticipates these contracts could contribute to a growth of 1-2 percentage points in 2026. Also, ICF International has secured over $40 million in contracts to support the National Institutes of Health (NIH) with advanced technology initiatives.
In addition, ICF International has expanded its share repurchase program, raising the total authorization to $300 million. This decision follows the company's solid Q3 growth and the increased full-year EPS guidance. These recent developments highlight the company's robust financial health and operational efficiency.
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