Telkonet Acquires Smart Systems International

  • Telkonet
  • 03.16.07
Telkonet, Inc., a leader in providing in-building broadband access over existing electrical wiring, announced that it has completed the acquisition of Smart Systems International (SSI), a leading technology manufacturer of in-room energy management systems for the hospitality industry.

Telkonet acquired substantially all the assets of SSI for $7 million, comprised of cash and company common stock.

SSI’s patented energy management technology eliminates wasted energy from heating and cooling unoccupied rooms, constantly adjusting the temperature based on current room conditions. It evaluates how far the temperature can drift for maximum energy savings, while ensuring the room will only be minutes away from the occupant’s comfort setting range. This patented drift/drive function guarantees occupant comfort while saving valuable energy.

Telkonet plans to integrate the two companies' products using the Telkonet iWire System™ to provide a cost-effective, easy-to-install broadband platform to network all the energy-related components. Telkonet’s system will create a Web-based enterprise energy management system, enabling remote energy management, monitoring and analysis. This powerful, comprehensive energy management system will offer the hospitality industry an economical, efficient approach to reducing energy consumption by up to 30 percent−a significant savings.

Bill Dukes, president and CEO of SSI, said, “The marriage of SSI and Telkonet’s technology creates unrivaled synergies that will effectively enable us to provide the hospitality industry with expanded, feature-rich energy management capabilities, such as peak load management programs, among other benefits. We are excited about the endless possibilities created by the combination of SSI and Telkonet; together we will fulfill and exceed our customers’ energy management needs.”

Ron Pickett, president and CEO of Telkonet, added, “Both Telkonet and SSI are passionate about providing a robust, hassle-free, cost-effective and efficient energy management solution. Our two companies combine best-of-breed of technologies–broadband networking and energy management–to provide our customers with a comprehensive and proven approach to energy management.”

In addition to over 60,000 product installations in the hospitality industry, SSI’s solutions are widely distributed by several energy services companies who are engaged with various power utilities’ energy-efficiency programs. To help hotels and motels reduce electricity usage, the companies are purchasing SSI’s energy management systems to provide to lodging owners, and will offer free energy-saving retrofits designed to eliminate the wasteful use of in-room air conditioning and heating units.

Telkonet assumed certain purchase orders relating to a major utility energy management initiative through two select providers. The current order backlog amounts to approximately $500,000 and the estimated remaining program value amounts to $3 million. Since entering the initial letter of intent to acquire the assets of SSI, the Telkonet regional sales organization has been premarketing and testing the value of the new service offering. As a result, to date, over $3 million of new proposals are pending, with one trial already installed and under evaluation.



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