Navigant Purchases Summit Blue

Further enhancing its Clean Energy Advisor position in the energy market, on Monday, Navigant Consulting Inc. (NCI) announced the purchase of Summit Blue Consulting LLC, a leading energy industry consulting firm. However, the terms and details of the transaction remain undisclosed.
 
Navigant’s purchase decision appears appreciative as Summit Blue, since its inception in 2000, focuses in helping organizations to take viable energy investments and operation decisions. For this, the company produces a concrete data analysis of the available alternatives. This approach aims to position utilities and energy companies for a profitable, sustainable future.
 
Additionally, Summit Blue assists its clients to comprehend the technology, market, and regulatory risks associated with resource investment decisions and developing strategies to quantify and mitigate those risks. To achieve this, the company capitalizes on its Smart Grid planning, electricity pricing and strategic resource development. Merging with Navigant will also help Summit Blue expand its consulting services in the areas of energy efficiency, renewable energy investment analysis and Smart Grid space.
 
Although the costs and liability on Navigant’s shoulders are yet to be known, we believe the acquisition modestly fits in with the company’s product portfolio. With the addition of Summit Blue’s product and service offering, Navigant will be able to augment its revenue growth and achieve its operational and performance goals.
 
Navigant had reported a substantial decline in its revenues during the third quarter of 2009 on low demand and stagnant pricing due to the weak global economic cues. However, the earnings of 18 cents per share were slightly ahead of the Zacks Consensus Estimate of 16 cents due to an improvement in the utilization and cost-cutting initiatives undertaken by the company. Navigant processed most of its cost control by significant layoffs. Merging with Summit Blue appears crucial for the company to pull up both demand and bill rates in the near term. Thus, we believe that both the companies will substantially benefit from the deal.

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