March 24, 2011 / 6:12 PM / 7 years ago

UPDATE 1-Schneider Electric buys Summit Energy for $268 mln

* Summit seen generating $65 mln in revenue in 2011

* Purchase seen as accretive to EPS in first year

(Adds background, details)

PARIS, March 24 (Reuters) - France’s Schneider Electric (SCHN.PA) signed an agreement to buy closely held U.S.-based energy procurement company Summit Energy Services for $268 million.

Schneider is spearheading an effort to increase its presence in energy services and smart grids, technology which regulates the flow of electricity into people’s homes and businesses, and said last year it was hunting acquisition targets. [ID:nWEA6787]

Schneider said on Thursday the Summit purchase, still subject to regulatory approval, should help the company compliment its efforts in the field of energy auditing and monitoring.

Schneider said Summit is expected to generate revenue of $65 million in 2011 and had an earnings before interest tax and amortisation margin above the Schneider Electric average.

    In 2010 Schneider reported EBITA margin as a percentage of sales of 15.6 percent.

    The purchase should be accretive to earnings per share in the first year, the company said.

    Kentucky-based Summit Energy started out as a natural gas consulting firm and branched out into energy procurement, data operations and budget development in the energy field.

    According to its web site, it has 11 international offices and employs 350 people. (Reporting by Nina Sovich; Editing by Christian Plumb and David Holmes)

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