Generac acquires Ecobee for $770Mn

Toronto-based smart home thermostat start-up Ecobee is being acquired by Generac Holdings for $770 million. The acquisition is expected to close during the fourth quarter.

At closing and subject to customary adjustments, Generac will pay $200 million in cash along with $450 million in common stock to the current equity holders of Ecobee.

Ecobee was founded in 2007 and is headquartered in Toronto. With a team of over 500 employees globally, Ecobee’s smart thermostats optimize heating and cooling systems to deliver energy savings for homeowners.

The current Ecobee CEO Stuart Lombard will stick around in the role of CEO. Going forward, Ecobee will function as a subsidiary of Generac, out of its same Toronto-based office.

“Ecobee’s solutions are an important addition to Generac’s extensive residential energy technology portfolio,” said Aaron Jagdfeld, president and CEO of Generac. “Residential HVAC systems represent the largest energy-consuming device in the home today and Ecobee’s smart thermostats and sensors offer the most intelligent way to balance comfort with conservation.”

Ecobee has raised over $200 million in venture capital till now. It is backed by Amazon through the Alexa Fund and last raised capital in 2018, pulling in over $127 million CAD in Series C financing.