EnerNOC to Spend $76 Million for World Energy Solutions

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Boston energy software company EnerNOC Inc. announced on Tuesday that they plan to lay out $76 million in cash for energy auction business World Energy Solutions, Inc.  This places a value of $5.50 for each share of World Energy stock, about 1/3 higher than Tuesday’s closing price of $4.15 per share (Nasdaq: XWES). EnerNOC will also be taking on World Energy’s debt, totaling approximately $10 million as of the end of June.

Directors at both Enernoc and World Energy already approved the deal, which is expected to close during Q1-2015.

EnerNOC Chairman and Chief Executive Timothy G. Healy said, “This acquisition advances our energy intelligence software business and will help us deliver more value to our enterprise customers who are looking to increase productivity and take control of their energy costs.”

The two companies have overlapping customer bases. Users of EnerNOC software include companies, utilities and various other entities buying and managing energy while World Energy runs online energy auctions.

EnerNOC revenues during 2013 totaled about $383 million with profits of $22 million, compared to World Energy’s revenues of $35 million with a net loss of $2 million. EnerNOC reported it expects the deal to boost its annual revenue by about $30 million.

World Energy is allowed to seek offers from other buyers for another 55 days, with EnerNOC having the right to match any offer.

What the deal means for employment is unclear. World Energy currently has more than 100 workers. EnerNOC said in an SEC filing that employment decisions will be made during planning to integrate the businesses.

Three Lessons Jeff Bezos Taught Me About Running a Startup

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Approximately twenty years ago, serendipity helped new Seattle resident Maryam Mohit take a giant leap toward her dream to start an online bookstore. That vision helped blossom due to a friend’s suggestion that she meet with “a guy named Jeff” who had a similar outlook. That person turned out to be Amazon founder Jeff Bezos.

Mohit soldiered on despite the attitude of friends who told her that the concept of people giving someone their credit card information over the internet would be a disaster.

Bezos asked during their initial meeting if Mohit would be able to make the website interactive, and soon after she was hired by the then-25 person company as its first web producer. She eventually became the head of a site development department with Amazon, with 200 people working under her.

During her time working with Bezos, she was able to discover three important business lessons from him:

  • Every employee from top to bottom needs to understand what it takes to do the job
  • Make a tireless commitment to customer service by making sure you listen to them
  • Keep a running list of what is working and what isn’t

Using the lessons she gained from her time at Amazon, the now-47-year-old Mohit and co-founder Claudine Ryan have created startup firm GemShare, which is an iOS app. The new company has been compared to Yelp, but differs in the fact that only people a person trusts offer the recommendations that are seen.

Mohit has adopted those principles with her new company:

  • Despite her status, she performs such mundane tasks as making copies or personally changing files that need to be fixed
  • The two founders made sure the app’s use of Facebook would not result in every “friend” being spammed
  • She and Ryan have an Excel spreadsheet of every customer’s suggestions or complaints

The app has met with strong success in app-happy San Francisco, an endorsement which will now move it to new markets in the months to come.

Boston’s Sapient Corp to be Sold in $3.7B deal

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French advertising conglomerate Publicis Groupe has acquired independent Boston-based ad agency Sapient Corp. for $3.7 billion in a deal that was announced on Monday morning.

Sapient’s current co-chairman and CEO Alan Herrick will be CEO of the new Publicis.Sapient group, which will add Razorfish Global and Rosetta, two other subsidiaries of Publicis within the new company. The creation of that organization is expected to increase the total revenue that Publicis receives from digital and interactive services to 50 percent.

Most of the principals involved noted that Sapient’s production operations in India will help cut costs for the new firm, while also stating that the offices of certain unnamed subsidiaries will be consolidated.

Almost eight years ago, Publicis purchased another Boston digital-related company, Digitas, for $1.3 million, which fared better than Publicis’ last attempt at a merger, when a proposed deal with Omnicom collapsed. That subsidiary will now be known as DigitasLBi, and will join Sapient’s former subsidiaries: SapientNitro, Sapient Global Markets and Sapient Government Services in what Publicis is calling a new platform.

The acquisition is expected to be completed sometime early next year, with Publicis set to pay $25 in cash for each share of Sapient. Based on last Friday’s share price, that would give Sapient shareholders a 44 percent premium.

Sapient began as a consultant for IT firms in 1990, but derives the majority of its nearly $1.4 billion current revenue as a result of its evolution into a marketing and ad agency. The company has offices in 37 cities that has nearly 12,000 employees across the world, including 640 in Boston.

Since 2009, Sapient has acquired a number of firms, most notably New York-based Nitro, which was renamed the aforementioned SapientNitro following the merger of the two companies’ staffs. Other acquisitions included design studio Second Story, consumer research firm Iota, marketing analytics company (m)Phasize, and La Comunidad an ad agency geared toward Latino demographics.

ACEEE: Massachusetts Tops California as Most Energy-Efficient State

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Recently, the American Council of Energy-Efficient Economy (ACEEE) released the eighth edition of the State Energy Efficiency Scorecard. The scorecard ranks the states based on various energy-efficient metrics such as how much electricity and fuel they use and their overall carbon footprint. In 2014, Massachusetts achieved the highest score for the fourth year in a row.

Today, states are implementing many different energy efficient tactics and programs. In fact, the number of state energy efficiency programs has tripled since the first ACEEE scorecard was introduced eight years ago, with many states using new energy-efficient initiatives to promote in-state jobs.

According the scorecard, the top states for energy efficiency are Massachusetts (42/50), California  (40.5/50), and with three states – Vermont, Oregon, and Rhode Island – tied for third place at 37.5 out of 50 possible points.

The top two states are certainly no surprise.  In recent years, Massachusetts has been earning the top slot on the scorecard for years and California is consistently found close to the top. Looking a bit deeper, Rhode Island, which tied for third, joined the top five for the first time. This is a testament to the improvements the state has been making in its own initiatives to improve its score.

States at the top of the list have each invested in energy efficiency programs that help spread awareness and implement utility, transportation, building, and government policies that encourage energy efficiency. In turn, these policies work to reduce energy costs and greenhouse gases that scientists say contribute to global warming.

Just this past summer, the town of Newton replaced 8,406 high-pressure sodium street lights with LEDs, a project made possible by a $250,000 grant from the Green Communities Act and $500,000 in rebates from NSTAR.  Massachusetts-based businesses are also leading the way, fostering our nation’s energy-efficient habits. Access Fixtures, a lighting company based in Worcester is one of the many contributors to the Commonwealth’s high score. Their lighting specialists encourage their customers to use LED lighting that uses a mere fraction of the energy compared to other light sources.

According to Massachusetts Governor Deval Patrick, “Energy efficiency is the cheapest and cleanest energy resource.” The governor stated that 65,000 in-state jobs have been created by energy-efficient incentives. He believes that the Commonwealth can have a clean-energy future along with robust economic growth. The two need not be mutually exclusive.Maggie Molina, Director of ACEEE’s Utilities, State, and Local Policy program, said: “Energy efficiency is also good for business. State action on energy efficiency improves bottom lines, drives investment across all sectors of the economy, creates jobs, and offsets the environmental harms created by the energy production system.”

Keeping Your Customer’s Secrets

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Cray Computers are priced anywhere from $500,000 for their “discount” XC30-AC model all the way up to $60 million for the Cray Titan. The company is world-famous for their line of supercomputers, and their products are used by many of the biggest companies – and governments – around the globe.

Recently, Cray mentioned that a major league baseball team had purchased one of their supercomputers – they aren’t saying which team or even which model of computer – to power its analysis of real-time statistics during a game. The obvious intent behind such an expensive purchase was to give this “mystery team” an advantage over their opponents while it still matters – during the actual game in progress. In today’s era of sports-as-megabusiness, the slimmest of perceived advantages are zealously pursued – and protected – by every team and player.

This anecdote shines a light on a relatively common problem that has always existed with client portfolios; companies can’t always mention their customers by name.  Quite often they can’t say anything at all about a project because that would give the client’s competition an inside look at their process and possibly dilute the advantage they enjoy. This can become especially frustrating for the sales and marketing types who love to brag about every important deal in their pursuit of the next one.

At Coghlin Companies, we are quite often precluded from telling anyone exactly what we are doing for a particular client.  Aside from the obvious examples of products we manufacture for the homeland security and similarly sensitive sectors, we can’t always share some of the most impressive work we do. To do so would be against the best interests of our client, and that makes it in our best interest to stay quiet.

The caring associates at both Columbia Tech and Cogmedix work hard every day to bring our clients’ products to market. More often than not, the products we manufacture for our customers do something that the world didn’t even know was possible – yet. Because we work with innovators and global leaders in various industries, the odds are the product we are building today will lead an industry tomorrow. For that reason, it’s only natural that many of our customers ask us to help keep their secrets safe.

We will, of course, comply with that request every time.

Are Massachusetts’ Medical Records Good Enough to Help Fight Ebola?

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Electronic medical records are meant to be helpful for all medical professionals. However, if we look at the case of the first person to die from Ebola in America, some of these records are clearly not up to snuff . When Thomas Eric Duncan went into the hospital complaining of not feeling well, he noted that he had been to West Africa. Hospital staff did not blink an eye, and his medical records did not flag him as a health risk. This incident illustrates the point that a gap in the system exists, and that this must be addressed in all medical facilities across the state and the nation.

When medical professionals are accessing electronic medical records, they need to be presented with system alerts that will tell them what the best protocol dictates. If you put a dangerous travel location into the system, it should warn you of imminent danger. People who have traveled to Africa during the Ebola epidemic should be flagged immediately, and the medical system should be prepared to warn doctors and nurses of travel advisories.

These advisories should be no different than the travel advisories issued by the State Department. These records can help doctors and nurses treat people more quickly, but they are useless if they are not noted properly. Perhaps, if Thomas Eric Duncan had gone to another hospital, it is possible that properly notated medical records could have saved his life. Also, it is possible that the system could have saved people who might have been exposed inside the hospital.

Electronic medical records in Massachusetts are very clever, but they are not quite strong enough to protect all doctors, nurses and patients. These medical record systems need to be fitted with travel advisories and other alerts that will warn medical professionals of a potential threat. This could save further lives and prevent an epidemic here in America.

Is MA Real Estate Market Rebounding?

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With prices stabilized and interest rates under 4.25 percent, buyers appear confident in the Massachusetts housing market. According to the Massachusetts Association of Realtors (MAR), pending sales of both single-family homes and condominiums continued rising in September.

The MAR noted a 22 percent increase in September of 2013 in the number of accepted offers or homes placed under agreement. The 4.901 homes placed under agreement last month was the highest monthly total since the MAR began tracking data. The number of condominiums placed under agreement rose to 1,858 and represented a 13 percent increase.

Despite the increase in future sales, the median selling price remained virtually unchanged. The median selling price for single-family homes was $325,000, a modest increase of $500 over last year. The median price of condominiums remained around $305,000.  Analysis of the price data indicates that while sellers appear confident of the market conditions, buyers appear to be waiting for the lowest price.

According to Peter Ruffini, MAR president, an increase in inventory and leveling of prices led to a drop in confidence among MAR members. The organization’s confidence index, which indicates future activity, dropped 14 percentage points to 54.07. The index is based on a 100-point scale with 50 being neutral. Meanwhile, the price index dropped 7 percent to 65.37, adding to a lack of confidence.

While it’s clear that the Commonwealth’s real estate market still has some recovering to do, it’s also clear that progress is being made.

Apple and Bose Settle Patent Dispute

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These days, as we are constantly surrounded by noise and seek personal respite, noise cancellation is an increasingly popular – sometimes necessary – technology that subtracts noise in the surroundings from what is heard through a headset. This technology has proven to be “big money.”

Two companies, Beats Electronics (now owned by Apple) and Bose Corporation, are capable of providing this kind of quality sound through their headphones. Unfortunately, they have been at odds with one another and have been in court since July over five patents that control the suppression of background noise in their products.

Both companies manufacture their headphones in China, a key point, since Bose was seeking to prevent Beats from bringing its products into the U.S. Moreover, Bose claimed patent infringement and sought damages as well.

Outside the court case, Bose sought investigation of both Beats and its contractors. It brought its complaint to the U.S. International Trade Commission.

And on top of judicial and administrative action, there are additional items for this story. It turns out that Bose, as an NFL sponsor, was offended when a San Francisco Giants team member wore its competitor’s Beats headset to a postgame event. The effect? Bose’s sponsorship was supporting the advertisement of its competitor!

The word is that Bose and Beats have settled their disagreement. Bose has sought to end all judicial and administrative actions. Officially, the whole thing is “settled,” but details have not been made public.

It has been observed that Apple appears to have more interest in its streaming-music system and not on accessories like Beats with its headphones. Apple really added to its streaming capabilities by purchasing Beats Music, a streaming subscription service, and may not have had so much interest in Beats hardware and this suit.

Starting Salaries Projected to Rise 3.8 Percent in 2015

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According to human resources firm Robert Half, it is expected that annual salaries for professionals in the USA will increase by 3.8 percent in 2015.  Those working in information technology (IT) and other technology fields are expected to benefit the most. New entrants in the information technology industry will receive compensation that outpaces the general trend, as they are expected to earn 5.7 percent more in their initial salaries, survey reports find.

Those professionals in the financial, accounting, creativity, and marketing-related industries are expected to receive salary hikes slightly below the general trend at 3.5 percent. 

The supply of talent in many sectors is much lower than is the demand, thereby helping to boost wages to attract more people to the respective fields. This trend is particularly visible in the IT and finance industries. It has become important for these industries to improve their starting salaries to compete in the market for talent. The need becomes more acute when these skilled workers are aware of their growing market demand.

In 2015, mobile technology, security and data management services are expected to see an increase in demand for talent. In fact mobile application developers are expected to receive the highest yearly compensation packages.

The legal sector is also experiencing an increase in wages as well, though it is somewhat muted compared to the aforementioned industries. Demand is higher for middle and senior level professionals in high-growth areas such as litigation, commercial law and intellectual property protection. Skilled paralegals are also expected to be high in demand with higher payouts.

Starting salaries of employees in the administrative sector will increase by 3.4 percent. Initial payment of experienced executives and administrative assistants, especially in healthcare, human resources and customer service areas are expected to rise more than other industries.

Massachusetts Emerging as Robotics Leader

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In the Commonwealth of Massachusetts, one need not look very hard to find robots under construction, being tested or in action. The state is fast becoming the robotics capital of the country. A long list of companies make their headquarters here including iRobot Corporation, the creators of the Roomba vacuum cleaner. Bluefin Robotics Corporation manufactures underwater units, CyPhyWorks Incorporated designs spying hover crafts and Rethink Robotics creates robots used in manufacturing. Massachusetts also boasts MIT and WPI, both schools that remain on the cutting edge of developing new technology every year.

Altogether, there are 100 robotic companies and 35 research and development facilities that design and manufacture robots for consumer, industrial, law enforcement, medical, military and research purposes. In the past four years alone, 11 new companies emerged. Massachusetts sells and exports more robots than any other location on the planet. Studies estimate that annual sales are close to $2 billion. The industry also currently employs approximately 3,200 people.

Robotics companies are thriving in the state, as manufacturers and other organizations are expressing an ever-growing desire to incorporate the machines into daily operations. While some fear that the automated devices will replace humans in the employment sector, the machines are largely being created to perform the work, not replace worker. In military scenarios for example, robots have the capability of entering dangerous areas, which saves the lives of troops.

The phenomenal growth of robotics also influenced the University of Massachusetts Lowell to construct the New England Robotics Validation and Experimentation Center. The 10,000 square foot facility will serve as the testing grounds for manufacturers desiring to test their robots in a variety of environments. The site will feature indoor and outdoor testing centers that include sand pits and splash pools. The ideal location means that the facility will be readily accessible to dozens of companies.

Massachusetts Technology Leadership Council chief executive Tom Hopcroft believes that robots are becoming common technology and that only a few places in the world make that possible.

Massachusetts is one of them.