Arcadia acquires utility-data provider Urjanet
Arcadia, a utility-data insights software company most recently valued at $1.45 billion, tells Axios it has purchased utility-data broker Urjanet for an undisclosed amount.
Why it matters: As the private markets cool, look for more consolidation to sweep areas like ESG software and data tools, among other formerly frothy sectors.
What's happening: Urjanet will become part of Arcadia once the deal closes, and Urjanet CEO Sanjoy Malik will become a senior adviser, Arcadia CEO Kiran Bhatraju tells Axios.
- The acquisition was a mix of equity and cash, Bhatraju says.
- Arcadia closed $200 million in Series E funding on May 10.
State of play: Urjanet is a decade-old company that provides utility data to corporations. Roughly 30% of the Fortune 500 uses its software, Bhatraju says.
- Those corporations are now Arcadia customers, and Arcadia can now provide recommended actions and ESG goals using Urjanet's data sets.
- Arcadia had previously indicated its interest in working with corporations on ESG data targets and other emissions-cutting initiatives, and the acquisition moved that timeline forward by years, Bhatraju says.
The intrigue: The acquisition was already on his radar prior to the $200 million funding round earlier this month, he added.
- He also says Arcadia is willing to pursue other acquisitions in the future, but that the current funding environment didn't play much of a role in this particular deal.
The bottom line: "You will see more private-to-private acquisitions" in this market, Bhatraju says.