eEnergy has announced its successful completion of the acquisition (‘the Acquisition’) of UtilityTeam Trading Limited (‘UT’) on a cash and debt-free basis for initial and deferred considerations totalling up to £21m.
A placing (the ‘Placing’) of new shares to new and existing institutional investors by way of an Accelerated Bookbuild (‘ABB’) priced at 15p each raising £12m was completed yesterday in order to satisfy the cash element of the transaction, with the balance being due in ordinary equity.
Coming with attractive deal metrics, this UK Top 20 Energy Management business is a high growth energy consulting and procurement company that generates exceptional quality, recurring revenues from a large contracted industrial and commercial customer base, is expected to materially enhance Group earnings in its first year of ownership.
Very much in keeping with the Board’s strategy of evolving into an integrated energy management and savings platform that places technology and analytics at the heart of its customer proposition, this latest acquisition builds further on the Group’s ability to both cross and up-sell across its highly complementary offerings, while leveraging the platform operated by Beond to heighten operating efficiencies.
Coming not long after providing shareholders with a trading update on its transformational year ended June 2021, in which eEnergy delivered both strong organic growth and a maiden profit, this latest acquisition is expected to help sustain current momentum in a capital-constrained post-COVID environment in which businesses will become increasingly focussed on cost reduction, capital-free solutions and net zero legislation. Its combination with the Group’s existing offering, provides opportunity to become a UK Top 10 energy broker.
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