SPOKANE, Wash., Dec. 8, 2010 /PRNewswire-FirstCall/ -- Advantage IQ, Inc., a leading provider of strategic energy management solutions and a subsidiary of Avista Corp. (NYSE: AVA), announced today that it has entered into an agreement to acquire The Loyalton Group, a Minneapolis-based energy management firm known for its energy procurement and price risk management solutions. The company has long been a leader in the hospitality industry, with a strong presence in the multi-family, senior living, education and food service sectors. Under the terms of the acquisition agreement, The Loyalton Group, with revenues in excess of $7.5 million for the 12 months ending Sept. 30, 2010, will become part of Advantage IQ. The transaction will be funded entirely by Advantage IQ and is expected to be slightly accretive to earnings in 2011. The transaction is expected to close before Jan. 1, 2011, and is subject to customary closing conditions.
Commenting on the acquisition, Jeff Heggedahl, president and chief executive officer of Advantage IQ, said, "This acquisition shows further progress in our strategy to expand market share, while continuing to provide clients with a deep bench of expertise to help them manage energy consumption and reduce costs."
He continued, "The Loyalton Group has a roster of world-class clients. Their proven ability to secure aggressive energy pricing and develop unique risk management solutions will augment Advantage IQ's well-established procurement services for its clients, many of which are Fortune 1000 companies."
Services offered include utility expense management, energy procurement and price risk management, facility optimization and sustainability consulting. To support its national client base, Advantage IQ plans to maintain The Loyalton Group regional offices in Minneapolis, Minn., and Washington, D.C. Advantage IQ's Heggedahl will continue to lead the organization, and Loyalton co-founders Michael R. Vaughan and Martin B. Sieh will assume roles on Advantage IQ's senior leadership team.
"Advantage IQ is a leader in the energy management space, and we are thrilled to be joining this outstanding group of professionals," said Michael R. Vaughan, chief executive officer of The Loyalton Group. "The combined strength of both organizations will create opportunities for clients to further reduce expenditures, manage risk and leverage their sustainability initiatives for a competitive advantage."
With this acquisition, Advantage IQ continues to build upon its already significant position in the industry, growing its valuable electric usage database of more than 25,000 MW of commercial and industrial load.
About Advantage IQ
Advantage IQ partners with Fortune 1000 organizations to maximize business results through the reduction of energy expenses, managing risk and improving environmental performance. These outcomes are achieved through performance reporting, energy supply management, carbon tracking, and expense management. Advantage IQ's patented systems provide online access to critical cost and consumption data, enabling informed strategic management. Advantage IQ collaborates with clients to process, measure, analyze and improve resource administration in the key expense categories of energy, telecom, waste and leasing. Advantage IQ is the primary non-regulated subsidiary of Avista Corp,NYSE: AVA. For more information about Advantage IQ, visit www.advantageiq.com or call (800)791-7564.
About The Loyalton Group
The Loyalton Group puts experienced energy professionals to work solving the most pressing energy concerns of today's commercial and industrial enterprises. From daily bill management, energy procurement, and facility optimization to long-term carbon management, Loyalton's comprehensive solutions elevate profits, reduce costs, manage risk, and advance sustainability. Headquartered in Minneapolis, MN, The Loyalton Group has additional offices in Washington, DC and Houston, TX. For more information, visit www.loyaltongroup.com.
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 357,000 customers and natural gas to 316,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Avista's primary, non-regulated subsidiary is Advantage IQ. Our stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.
SOURCE Advantage IQ, Inc.