Genesis Has Choice Of Deals

Genesis Services, a new division of Itron Inc., could close its first deal by year-end, President Dom Geraghty said Friday.

Interest in the leasing and out-sourcing services Genesis will provide is so high officials of the fledgling concern met Friday to determine which opportunities to pursue first, he said.

“I’m already 12 months behind,” said Geraghty, who joined Genesis last month.

Geraghty, who will be based in the Silicon Valley of California, has specialized in venture capital efforts focused on the utility industry.

He said Genesis will buy equipment made by Itron or other vendors, then lease and service the gear on a long-term basis to utility customers.

The transactions will ease the capital burden on utilities more mindful than ever of costs because of new competition, he said.

Genesis is close to signing an agreement with one financial adviser with access to substantial capital, he said.

Those funds can be leveraged with Itron’s own solid balance sheet, market share and reputation, he said.

“We don’t have the resources we really address the opportunities we have now,” Geraghty said.

He said Spokane-based Itron will benefit by selling more equipment, which will help lower its own unit costs.

Genesis will use Itron’s sales force, he said. But instead of closing a sale, then leaving, Genesis will stay on as a consultant and partner, adding point-of-sale monitoring, security or other services, he said.

“With outsourcing, we’re getting married,” Geraghty said.

He said Genesis has 15 employees. Most are in Spokane, a few in California, and one in Minnesota, where Itron has another manufacturing plant.

“I manage what you might call a virtual organization,” he said.

More seriously, he added that he must be careful to match the pace of hiring with new business because because he does not want Genesis signing contracts it cannot service.

He said three contracts are near closing, another six are on an “A list,” with about a dozen more on the horizon.

“I think 1996 is going to be a really active year,” he said.

, DataTimes