NeuCo to Acquire Pegasus Technologies

NeuCo, Inc., a leading provider of optimization software solutions to the electric power industry, today announced that it has signed a definitive agreement to acquire Ohio-based Pegasus Technologies, Inc., a majority-owned subsidiary of Rio Tinto Energy America Services Company (formerly Kennecott Energy Company and a member of the Rio Tinto Group, a world leader in finding, mining and processing the earth's mineral resources). Pegasus has been providing optimization software solutions to the power industry for more than 20 years.
“This transaction brings together two firms that have been 100 percent dedicated to delivering optimization software solutions that mitigate the emissions and competitive market pressures facing the electric power industry. I am extremely excited about working with the Pegasus team and customers, many of whom were the early optimization visionaries in electric power,” said Curt Lefebvre, NeuCo’s president and chief executive officer. “This acquisition expands NeuCo’s North American business and provides an entrée into the Asian market through Pegasus’ current operations in China. In addition, acquiring Pegasus provides NeuCo with access to U.S. Department of Energy funding for the development of mercury solutions and other emissions reductions, and transfers to NeuCo control of the power market’s most comprehensive library of neural network and other technology patents.”
The terms call for NeuCo to acquire 100 percent of the issued and outstanding shares of Pegasus. In exchange, the current Pegasus equity holders will receive an equity interest equal to 26.5 percent of the outstanding common stock and equivalents in NeuCo post-transaction, and annual cash payments with a minimum aggregate value of $3.5 million.
“NeuCo is a recognized leader in the optimization of electric power plants,” said Mark Roberts, sales and marketing director of Rio Tinto Energy America. “We are proud to become an investor in NeuCo and remain committed to efforts that enhance the efficiency and reduce the emissions of coal-burning power plants. NeuCo and Rio Tinto Energy America share a common interest in reducing emissions.”
About NeuCo, Inc.
NeuCo is a leading provider of optimization software solutions that help electric power producers reduce emissions, increase efficiency and improve availability. NeuCo provides a comprehensive suite of optimization software products that help power generators improve their emissions, operating and competitive profiles. NeuCo’s shareholders currently include CRA International (Nasdaq: CRAI), NSTAR and employees. More information about NeuCo can be found on the company's web site at www.neuco.net.
About Pegasus Technologies, Inc.
Pegasus Technologies, a majority-owned subsidiary of Rio Tinto Energy America Services Company, was founded in 1986. Pegasus is a premier provider of power facility optimization solutions in the electric power market, with customers including some of the largest power generators in the world. Pegasus solutions utilize patented advanced process control and neural network technologies, enabling power facility owner/operators to cost-effectively leverage and improve the performance of existing assets, allowing them to reduce emissions and lower costs of electricity production. Pegasus can be reached at 888-357-7794, or on the Internet at www.pegasustec.com.


Statements in this press release concerning NeuCo’s acquisition of Pegasus Technologies may be considered “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties. Information contained in these forward-looking statements is inherently uncertain, and actual performance and results may differ materially. Such factors that could cause actual results to differ materially from any forward-looking statements contained in this press release include, among others, the possibility that the proposed acquisition of Pegasus does not close, delays in closing the proposed acquisition of Pegasus, difficulties in integrating Pegasus’ business and personnel into NeuCo's existing operations, undisclosed or unanticipated expenses or liabilities associated with the acquisition, acquisition costs, the potential loss of clients and the potential loss of key personnel. NeuCo undertakes no obligation to update any of its forward-looking statements after the date of this press release.
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