C3 recently announced its acquisition of Efficiency 2.0. This acquisition is a strong move for C3 as it strengthens its offerings for utilities. The acquisition also changed the competitive dynamics with firms like Opower that also sell solutions to utilities.
Founded in 2008 and based in New York, Efficiency 2.0 offers a SaaS-based solution to utilities to automate energy efficiency programs and the customer experience for residential customers. The solution uses benchmarking and a loyalty-based approach to encourage consumers to save energy. Efficiency 2.0 has a handful of utility customers.
I had an opportunity to speak with Pat House, co-founder and Chief Marketing Officer at C3, and she shared more of the driving factors for the acquisition. She explained that the acquisition decision was driven by their utility customers, such as PG&E, who desire to work with one vendor across all their customers segments (commercial and industrial, small- and medium-business, and residential).
This ability to offer a solution across all utility customer segments is highly unique in the market, and combined with technical strength of managing large data sets and data integrations of C3, positions C3 very well.
We anticipate that this acquisition will alter many sales cycles and competing firms like Opower and others will need to develop or acquire an offering for commercial and industrial companies.
Note that startup C3 acquired a firm to expand its software offerings. SCI Energy (previously Scientific Conservation) acquired a services firm (Servidyne) to broaden its offerings.