Irving energy firm 5 acquires Legacy Energy Group
The deal gives the company more reach in the PJM and MISO grid regions and adds a new data platform to its existing tools.
By Vincent Parker ·
Energy advisory firm 5 has bought Legacy Energy Group, a Virginia-based company that manages energy purchases for industrial, commercial, and multifamily clients. The Irving, Texas, company did not say how much it paid for Legacy. Legacy, which started in 1999, handles more than $300 million in annual purchases of natural gas and electricity.
5 was founded in 2011 and serves more than 5,000 North American customers, including Empire State Realty Trust, Floor & Decor, Redeemer Health, and Xerox. The firm uses a digital platform called Level5 to track market trends and help clients manage power usage. Legacy brings its own data system, UtiliViz, to the table. 5 said combining these two tools will improve its ability to provide data-driven advice to clients.
Brian Hayduk, co-founder and CEO of 5, said Legacy’s deep knowledge of the PJM grid helped seal the deal. PJM operates in all or part of 13 states and the District of Columbia. Legacy’s headquarters is inside PJM, which is the largest grid operator in the country. The acquisition also expands 5’s presence in the MISO region, which serves 15 states and Manitoba.
“As energy becomes a growing portion of companies’ operational costs, we are seeing more demand than ever for trustworthy partners who can help clients understand and manage the new complexities of power markets,” Hayduk said.
This is the fourth acquisition for 5. It is the second since Energize Capital, a Chicago-based investor, put money into the firm last year. Energize did not reveal the size of its investment, calling it significant. Hayduk said 5 is open to buying more companies if their culture and values align with its own.
The Legacy team, led by President Michael Housley and Senior Vice President Thomas Ihrig, will now report to 5. Legacy’s office in Warrenton, Virginia, about 45 miles west of Washington, D.C., will stay open. The deal brings 5’s total workforce to more than 100 people.
“Joining the 5 team strengthens our analytic capabilities and expands behind-the-meter services we provide to our clients,” Housley said.
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