Hilco Streambank Announces Successful Acquisition of Venture Capital Backed Assets from Varentec, Inc. by Koch Engineered Solutions’ subsidiary Sentient Energy

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NEW YORK, Jan. 29 / PRNewswire / – Hilco Streambank, the world’s leading advisor on the valuation, monetization and disposition of intellectual property, announced today that it has successfully facilitated the private sale of essentially all of Varentec’s assets to Sentient Energy, a Subsidiary of Koch Engineered Solutions (KES). The acquisition included all of Varentec’s intellectual property, inventory and customer contracts. Hilco Streambank was also pleased to be part of the negotiations to keep the majority of Varentec’s employees. The terms of sale were not disclosed.

Varentec, headquartered in Santa Clara, California, developed patented hardware and software solutions to correct voltage irregularities at the network edge. Varentec, a pioneer in the field, disrupted a slow-moving industry by creating a sleek and proven solution that has become a fundamental component of efficiency savings for some of the largest investor-owned utility companies in the United States.

Sentient Energy, which was acquired by KES in March 2020, has developed and implemented innovative software solutions for sensor and network analysis. Transformative technology enables utilities to improve grid security and reliability, reduce grid management costs, extend the life of existing infrastructure, and prepare for the increasing growth of distributed energy resources.

The acquisition of Sentient Energy was an important first step in KES’s vision to build the leading intelligent grid platform in the US. The addition of Varentec technology brings a combination of hardware-software voltage regulation solution that fully complements the Sentient sensor and analysis suite. Together, they represent a formidable step forward in the drive of the entire energy industry to modernize and adapt to new technologies, including distributed energy resources and renewables that have placed significant strain on the grid.

Don Brown, Vice President of Business Development at KES, commented, “We have been very impressed with Varentec technology for some time and at KES we are confident that it will play an essential role in expanding our capabilities.” Bob Karschnia, CEO of Sentient Energy, reiterated Brown’s assessment, adding, “As excited as we are with this technology, we are equally delighted to have put together a world-class team to ensure we continue to provide superior service to our utility customers.” “

Hilco Streambank was selected by Varentec and secured lender WindSail Capital to begin the sales process in November 2020. The sale was completed on February 10, 2021. “We sincerely welcome the concerted efforts of Varentec management and the Hilco Streambank team to migrate the Varentec platform to Sentient Energy,” said Mike Rand, Managing Director of WindSail. “Sentient’s investment confirms our own investment thesis and ensures that Varentec’s voltage regulation and edge management system will continue to deliver significant energy savings to utilities around the world in the years to come. We see this as a superior result – full recovery and a strong home for the technology and the people. “

Gabe Fried, CEO of Hilco Streambank, said: “This has been a compelling process and our team appreciates the opportunity and is very pleased with the outcome, especially as they understand the importance of this technology for a greener and more efficient future for the US Energy sector. ” Regarding the process, Fried stated, “The Varentec process is a great example of the versatility and ingenuity of the Hilco Streambank in identifying suitable parties to bring to the table regardless of the type of asset or industry to close a deal. “

About the Hilco Streambank: Hilco Streambank (www.hilcostreambank.com) provides intellectual property services and expertise at the intersection of intangible assets and corporate finance – identifying, maintaining and generating value for clients through the application of experience, care and creativity. Hilco Streambank is a division of Hilco Global (www.hilcoglobal.com).

About Varentec: Varentec (www.varentec.com) was born in 2012 to bring information and control to the edge of the power infrastructure. The company was inspired by cutting-edge research at the Georgia Institute of Technology. funded by Bill Gates, 3M, and Khosla Ventures; and received support from the Ministry of Energy’s renowned agency for energy for advanced research projects (ARPA-E). Varentec opens up new energy savings through lower end consumption, better integration of clean, distributed energy resources and intelligent control at the edge of the grid.

About Sentient Energy: Sentient (www.sentient-energy.com) offers the industry’s only grid analytics system that covers the entire distribution network with quickly implemented intelligent sensors and analyzes that detect and analyze potential errors and grid events.

About Koch Engineered Solutions: KES (www.kochind.com) offers uniquely engineered solutions for mass and heat transfer, combustion and emissions control, filtration, separation, material applications, automation and actuation. Based in Wichita, Kansas, KES is a subsidiary of Koch Industries, one of the largest private companies in the world.

About Windsail Capital Management: WindSail (www.windsailcapital.com) provides growth finance for companies driving energy innovation and sustainability in a variety of industries. WindSail’s investments are typically between $ 2 million and $ 10 million and are made in the form of a secured loan. WindSail prides itself on thinking outside the box and structuring transactions that are specifically tailored to a company’s capital needs.

Media contact: Gary Epstein Hilco Global Office: (847) 418-2712 Mobile: (847) 323-4943 Email: [email protected]

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SOURCE Hilco Streambank


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