On Monday afternoon, ADMMicro, a Roanoke-born and -based energy management technology company, announced its acquisition by GridPoint, an Arlington-based company that develops "Smart Grid" software for electric utility companies.

"It's a great day," said Don Howell, a co-founder, president and chief executive officer of ADMMicro.

Founded in 2002, the growing company has been lauded as an example of brave and successful entrepreneurship.

Terms of the deal, which closed over the weekend, were not disclosed by the privately held companies. Both said ADMMicro will remain in Roanoke, where it employs nearly 50 people, and retain its management team.

ADMMicro designs and then manufactures, through contractors, patented systems that help commercial and industrial customers monitor, manage and cut energy expenses.

GridPoint executive John Spirtos said the software company first heard about ADMMicro through the energy management industry grapevine. He described ADMMicro as a "great technology company" with strong brand recognition. ADM- Micro will retain its name.

The marriage of GridPoint and ADMMicro -- the combined companies will employ about 175 people -- will provide commercial and industrial customers a package of software and hardware to manage energy use, Spirtos said.

In 2001, four electrical engineers previously employed by American Electric Power left the utility with an idea for a startup. They, along with AEP retiree Frank Blevins, founded ADMMicro.

ADMMicro has continued to grow as energy costs have risen nationally and businesses have emphasized reducing power bills. It says its products are installed in about 6,000 locations.

Howell acknowledged last year that ADMMicro might someday team with a "strategic partner." But he promised the company would stay in Roanoke.

GridPoint reports it has raised more than $220 million in equity capital. In addition to its Arlington headquarters, the company has offices in Seattle and Ottawa, Ontario.

For ADMMicro, Don Howell is the D in the company name. Arnie Tamagni, a principal engineer, is the A. Mark Vinson, vice president of engineering, and Mike Campbell, a principal engineer, supply the M's.

GridPoint says its software helps utilities "efficiently balance supply and demand, improve grid reliability and empower consumers" to manage energy consumption.

Peter Corsell, 31, is GridPoint's chief executive officer. He founded the company in 2003. In 2008, Technology Review, published by the Massachusetts Institute of Technology, included Corsell in its annual TR35 list of innovative technologists and scientists, all younger than 35, whose work is "changing our world."

GridPoint has worked with utilities that include Austin Energy, Duke Energy and Xcel Energy. ADMMicro's clients have included Advance Auto Parts, Target, the U.S. Postal Service, shoe company DSW, O'Reilly Auto Parts, Boddie-Noell Enterprises, a franchise operator of Hardee's restaurants, and more.

In 2008, ADMMicro moved from downtown Roanoke to the highly visible former home of the Spectacle Lens Division of Johnson & Johnson. ADMMicro leases a portion of the building, located beside Interstate 581 near Countryside Golf Course, from owner Delta Dental of Roanoke.

The U.S. Department of Energy warns that the nation's electric power infrastructure, also known as the "grid," is rapidly "running up against its limitations." Corsell has described the grid, which links power plants, distribution systems and consumers, as a "dumb, inefficient system" that wastes much of the power it generates. A smarter grid would foster the efficient production and delivery of electricity, provide consumers with energy-saving options and encourage renewable energy sources, says the DOE. As envisioned, it would also help guard the security of the power grid and enhance its reliability.

Late last month, President Obama earmarked $3.4 billion of stimulus money to advance the development of technologies to improve the grid. So far, GridPoint has announced involvement with two stimulus-funded energy projects, including a solar project for the Sacramento Municipal Utility District and a role supporting the deployment of electric vehicles.

Even though the Roanoke Valley has lost the headquarters of another local company, Howell said the acquisition should boost regional economic development.

"We certainly think so. That's the goal," he said. Howell and other company executives have long expressed their attachment to the region and belief in its future.

Staff writer Jeff Sturgeon contributed to this report.

Online: www.admmicro.com www.gridpoint.com www.oe.energy.gov/SmartGridIntroduction.htm