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DENVER - Liberty Energy Inc. (NYSE: LBRT), an established provider of energy services with a market capitalization of $2.5 billion, announced the acquisition of IMG Energy Solutions, a developer of distributed power systems, enhancing its subsidiary Liberty Power Innovations’ (LPI) offerings. The transaction, terms of which were not disclosed, brings together IMG’s engineering, software, and power marketing expertise with Liberty’s energy solutions. According to InvestingPro analysis, Liberty Energy maintains a strong financial health score and operates with a moderate debt level, suggesting solid positioning for strategic acquisitions.
IMG is known for its advanced power system designs, particularly its 4th generation modular power product that allows for quick deployment in creating microgrids. These systems are designed to be highly reliable and scalable, catering to the resiliency needs of data centers and other critical applications. The company also boasts a cloud-based operations platform that enables remote power dispatch and asset management, contributing to its record of zero environmental penalties. Liberty Energy’s strong operational efficiency is reflected in its healthy 25.8% gross profit margin and robust return on equity of 17%.
The acquisition aims to bolster LPI’s engineering and construction capabilities, systems controls, and market participation, particularly in the PJM market—an area where IMG has substantial experience. Ron Gusek, CEO of Liberty, expressed that the integration of IMG would position LPI to deliver low emissions, capital efficient energy solutions with a comprehensive power solution across the value chain.
IMG’s history includes powering an independent microgrid at Pittsburgh International Airport and operating a utility-scale solar array there. In December 2023, IMG sold six natural gas power plants in Northeast Pennsylvania to Tenaska, showcasing its ability to execute high-quality power projects.
Mike Brady, CEO of IMG, welcomed the merger, anticipating the combined expertise will further customer successes. Financial advisory for the deal was provided by FTI Capital Advisors, LLC.
Liberty Energy, founded in 2011 and headquartered in Denver, is a significant player in completion services and technologies for various energy producers in North America. The company also operates LPI, offering distributed power and energy storage solutions.
This acquisition marks a strategic move by Liberty to expand its energy solutions portfolio and enhance its position in the distributed power systems market. The information is based on a press release statement.
In other recent news, Liberty Energy Inc. reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $0.10, missing the forecasted $0.16, and generated revenue of $944 million, which was below the anticipated $997.31 million. Additionally, Liberty Energy experienced a 17% sequential decline in quarterly revenue. In leadership changes, Ron Gusek was appointed as the new Chief Executive Officer, and William Kimble was elected as non-executive Chairman of the Board. These changes followed the confirmation of the company’s founder, Chris Wright, as the U.S. Secretary of Energy. Meanwhile, board member Audrey Robertson announced her resignation, pending her confirmation as Assistant Secretary of Energy, Efficiency and Renewables. Liberty Energy has not yet announced a successor for Robertson. The company is focusing on expanding its power generation capacity as a growth strategy, with plans to reach 150 MW by the end of 2025 and 250 MW by the end of 2026.
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