Irving-based energy advisory firm 5 acquired Legacy Energy Group, a Virginia-based provider of energy management services, for an undisclosed amount.

Legacy Energy, founded in 1999, oversees more than $300 million per year in purchases of natural gas and electricity, 5 said. It operates in the industrial, commercial and multifamily sectors.

Expanding 5’s presence

5 said the deal expands its presence within the territories of two grid managers. One is PJM, an electric-grid manager that operates in all or part of 13 states and the District of Columbia. The other is MISO, an electric-grid manager that serves 15 states and Manitoba. Legacy’s headquarters is within the boundaries of PJM, the country’s largest grid operator.

Brian Hayduk, co-founder and CEO of 5, said Legacy’s in-depth knowledge of PJM and its wealth of subject-matter expertise helped seal the deal.

“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 in a statement.

“Legacy Energy has spent years helping clients understand the energy landscape,” he said, “and the team’s expertise in utility-bill management and tariff-rate analysis helps us support our clients across even more of their energy needs.”

This is 5’s fourth acquisition and its second since Chicago-based Energize Capital, whose portfolio includes energy and industrial businesses, invested in the firm last year. Energize didn’t disclose the amount of the investment, describing it only as “significant.”

Hayduk said 5 is open to more acquisitions, as long as a target company’s culture, ethics and values are a good fit.

Digital marriage

5, founded in 2011, caters to North American customers in the commercial, industrial and public sectors. Its more than 5,000 clients include Empire State Realty Trust, Floor & Decor, Redeemer Health and Xerox.

 On its website, Energize said 5’s digital platform enables its analysts to track energy market trends and prices to help customers with budgeting, expenses and power usage.

Energize said the duo of “advanced tools and deep market research has empowered 5 to optimize the whole energy story for their clients, providing the best possible procurement and energy support for their individual situations.”

5 said the marriage of Legacy’s UtiliViz utility data management system and its own Level5 energy data platform will increase the ability to supply “trusted, data-driven advice” to customers.

Merging the teams

The Legacy team, including President Michael Housley and Senior Vice President Thomas Ihrig, will work under the 5 umbrella, Legacy said. 5 said Legacy’s office in Warrenton, Virginia — about 45 miles west of Washington, D.C. — will remain open, bringing 5’s total headcount to more than 100.

“Joining the 5 team strengthens our analytic capabilities and expands behind-the-meter services we provide to our clients,” Housley said in a statement.