Utilitywise plc to acquire Energy Information Centre Limited for £15.5 million

utilitywiseUtilitywise plc, a utility cost management consultancy, is to acquire  Energy Information Centre Limited (“EIC”) for a total equity consideration of £15.5 million. Plus they will clear EIC’s mortgage debt.

To fund the transaction, Utilitywise are placing new ordinary shares of 0.1 pence each by finnCap Limited to raise £5 million and a secondary placing of existing Ordinary Shares by finnCap Limited on behalf of certain directors and Hub Capital Partners to raise £17.2 million at a price of 100 pence .

In 2007,on behalf of Euromoney Institutional Investor PLC, Fusion Corporate Partners sold EIC to Broadfern Partners. Then in 2009 Broadfern rebranded as EIC.

Transaction highlights:

Total equity consideration of £15.5 million, to be satisfied by:eic

  • £10.5 million in cash
  • £5 million in new Utilitywise shares
  • In addition, Utilitywise will repay EIC’s existing mortgage debt of £1.94 million
  • Placing of £5 million in new Utilitywise shares to part fund cash consideration. Placing at 100p per share, representing a discount of 6.5% to the closing mid price as at 12 June 2013
  • The consideration represents historic EV/EBITDA* multiple of 6.7x

Geoff Thompson, CEO of Utilitywise, commented: “The acquisition of EIC creates an energy procurement and consultancy firm of real scale and adds further products and expertise to our already impressive portfolio. EIC’s strength lies predominantly in the larger, Industrial & Commercial segment of the market, an area which we had identified as a strategic area of growth, which combined with our market leading position in the SME segment gives us a strong foothold across the market and an excellent platform for growth. Utilising our outstanding proprietary IT and business analysis systems and our combined product range, we believe that we can identify and target a much greater portion of the I&C market, maximise the strength of the EIC brand and, thereby, the return on this investment for our shareholders.

“Since Utilitywise listed on AiM we have carefully added strategic, complementary offerings to our business through the acquisitions of Clouds (energy management) and Aqua Veritas (water consultancy). With the addition of EIC we now have an extremely compelling portfolio of products and services to meet the diverse energy needs of clients of all sizes and the expertise to deliver them. I would like to thank shareholders for their continued support as we continue to look to the future with great confidence.”

A circular will be sent today to shareholders giving notice of a general meeting of Utilitywise to be held on 2 July 2013 at 9.00 a.m. at the offices of finnCap Limited, 60 New Broad Street, London EC2M 1JJ. A copy of the circular can be found on the Company’s website http://www.utilitywise.com.

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