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Generator company Generac announces plans to buy Ecobee

Generac's purchase of the smart thermostat company is expected to close by the end of 2021.

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Chris Monroe/CNET

Generac, a residential and commercial generator company, has announced plans to purchase Ecobee for "up to" $770 million. Ecobee's equity holders will receive $200 million in cash and $450 million in Generac common stock (NYSE: GNRC) at the close. Generac will pay an additional $120 million in GNRC common stock if "certain performance targets" are met between the close date and June 30, 2023, according to the official press release. 

Ecobee and Generac did not provide details regarding the performance targets, but did say they refer to "certain revenue and subscription targets to be achieved over the next two years."

Ecobee sells a limited offering of smart home products, including a home security camera, door/window sensors, temperature sensors and two smart thermostats -- most notably, the Editors' Choice Award-winning Ecobee SmartThermostat with Voice Control

Amazon's Alexa Fund contributed to a $61 million Series C investment in Ecobee in 2018 along with Energy Impact Partners, Relay Ventures, and Thomvest. Amazon in September introduced its own $60 smart thermostat created through a partnership with Resideo, makers of the Honeywell Home T9 Smart Thermostat.

Wisconsin-based Generac is known for its range of generators, pressure washers, energy storage products and related accessories, for both commercial and residential use. The sale is expected to close by the end of this year.

Read more: Best smart thermostats