Inspired Energy acquire Squareone Enterprises

inspired-logo3Inspired Energy has acquired Squareone Enterprises Limited in a deal worth up to in a £1.375 million. Squareone is a provider of energy procurement, energy management and water procurement services with a strong presence in the education and manufacturing sectors.

Inspired are paying £0.75 million in cash, plus an earn out of up to £0.625 million based on revenue targets for the 12 month periods ending 31 March 2019 and 2020.

In financial year ending March 2018, Squareone had revenues of £0.5 million, EBITDA of £0.25 million, and generated operating cash of £0.23 million. Net assets as at 31 March 2018 stood at £0.1 million.

Commenting on the acquisitions, Mark Dickinson, CEO of Inspired Energy said: “We are delighted to conclude the acquisition of Squareone, which is a highly complementary addition to Inspired’s core Corporate Division. The Squareone team are well respected within the sector, and were deservedly recognised as such at the 2018 Energy Live Consultancy Awards. The Acquisition further enhances our customer base and strengthens our sector specialisms.”

The business is based in Boldon, Tyne and Wear, close to the head office of Churchcom Limited, a company acquired by Inspired in April 2017. Michael Harkus, co-founder and Managing Director of Squareone, will remain with the Group after completion.

UK, Kirham, Lancashire & Boldon, Tyne and Wear

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GoCompare.com acquires energy switching specialist Energylinx for £10M

go-compare-logo-newGoCompare.com Group plc has acquired Energylinx for £10m in cash.

Energylinx is an energy comparison and switching specialist and has commercial relationships 69 domestic energy and 40 business energy suppliers. Customers include Which? and Citizens Advice Bureau. The company operates a white-label proposition, with around 200 active affiliates.

Matthew Crummack, CEO of GoCompare, said: “We are pleased to announce this acquisition, which marks yet another significant milestone for the Group as we continue to build services that work for both our customers and partners. Energylinx has an excellent reputation in the industry among energy suppliers and those who use its white-label services, and we will leverage our strong brand, tech and product capabilities to expand its reach and impact to help save even more people time and money.

Energylinx is headquartered in Alloa, Scotland and employs a team of 20 staff. Following completion, Ken Geddes, founder and CEO will join the Group.

UK, Wales, Newport & UK, Scotland, Alloa

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LG Energy Group acquires Guild Energy

LG Energy Group logo smlLancashire based LG Energy Group has acquired Guild Energy, an energy procurement business based in Liverpool. The terms of the deal were not disclosed.

LGE Managing Director, Asif Rizvi believes “These are exciting times for both the LGE and Guild Energy. The acquisition of Guild Energy further enhances our customer offering as the merger of SME with our current Industrial and Commercial products allows us to provide a more holistic approach to the market. The sharing of people, knowledge and systems across the companies will only strengthen the management and direction of both businesses”.

Karen Trepte remains as Managing Director of Guild Energy while Co-founder Paul Trepte becomes group risk manager within the wider Rigby Organisation, which is controlled by Simon Rigby, chairman of LG Energy Group.

UK, Blackpool & Liverpool

 

ECI Partners invests in Make It Cheaper

Private equity firm ECI Partners has acquired Make It Cheaper, a company that helps SME business customers compare and change their service providers, with a specific focus on the energy, telecoms and insurance sectors. The terms of the deal were not disclosed.

Make it cheaperMake It Cheaper, which has appeared three times in the Sunday Times Fast Track 100, posted turnover of £12.6 million last year and generated an operating profit of £1.62 million. The business was founded by CEO Jonathan Elliott in 2007 and now employs 175 staff.

Richard Chapman, head of business services at ECI commented, “Make It Cheaper’s motivated and experienced executive team have built a fantastic company that helps businesses save time and money. We are delighted to partner with Jonathan and the team, to help the Company scale up its customer acquisition and multi-product platform, and realise its potential for further growth.”

UK, London

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World Fuel Services Europe acquires Orchard Energy from Lakehouse

WFSWorld Fuel Services Europe has acquired energy procurement business Orchard Energy from Lakehouse plc. World Fuel Services paid £12.4 million in cash.   

Orchard provides consultancy advice to corporate clients in relation to managing their energy costs, particularly energy procurement and usage.  In addition, Orchard provides energy management services to commercial and industrial customers, including brokering supply with utilities firms, managing contracts and advising on energy consumption. The business employs 72 staff and is based in Elland, West Yorkshire, with offices in Glasgow, Bristol, Newcastle and Northampton.  

In the financial year ended 30 September 2016, Orchard had turnover of £6.3 million and profit before tax of £2.5 million.   

World Fuel Services recently launched the Kinect Energy Group, built from U.S. Energy, KTM, and Beach Front Energy in the United States and Bergen Energi and Utilities Exchange in Europe. Orchard will become part of the Kinect Energy Group.

USA, Miami, FL & UK, West Yorkshire

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World Fuel Services acquires Bergen Energi

 

Inspired Energy acquires Horizon Energy Group in Ireland

Inspired Energy is to acquire Horizon Energy Group Limited, an energy procurement consultancy with 34 employees, based in Cork, Ireland with customers including large Corporates, Public Sector bodies and SMEs. The acquisition will be part funded by a £9 million share placing.

Inspired will pay an initial Consideration of €9.0 million to acquire 90% of Horizon. Inspired has the option to acquire the outstanding balance of 10% for a further €1.0 million. Further deferred payments of up to €5.0 million are subject to achievement of financial performance targets for the periods ending 31 December 2017 and 31 December 2018.

Horizon’s management team, including Colin Barry, founder and MD of Horizon, will remain with the Group.

Commenting on the proposed acquisition, Janet Thornton, Chief Executive of Inspired, said: “Inspired continues to look to deliver on its growth strategy and Horizon provides an opportunity to drive growth from Inspired’s platform as it is an established business in a relatively untapped market. It will bring high earnings visibility, supported by a strong procurement corporate order book, and Horizon’s sales team will benefit from the cross-selling opportunities with access to Inspired’s broader capabilities, ultimately benefitting clients.”

“Ireland’s energy procurement sector is relatively underdeveloped compared to the UK, providing a significant opportunity for Inspired to deploy its expertise in increasing its presence in this market, leveraging the Enlarged Group’s experience of growth in the UK market.”

UK, Kirham, Lancashire & Ireland, Cork and Dublin

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Inspired Energy acquires Flexible Energy Management and Churchcom 

inspired-logo3
Inspired Energy has acquired the trade and assets of Flexible Energy Management Limited and 100% of the shares in Churchcom Limited.

Flexible Energy Management Limited (FEM)

Founded in 2012 , FEM is a public sector energy procurement specialist, servicing a customer base comprising of NHS foundation trusts/hospitals and academic and sporting institutions, through two NHS sponsored OJEU frameworks*. The business is based in Manchester, the two Directors of FEM have over 20 years’ experience in the NHS. 

Inspired are paying £2.2 million in cash for FEM and in addition will issue of 2,993,653 new ordinary shares to the shareholders, who will remain with the business. For the financial year ended 31 March 2016, FEM delivered revenues of £0.65 million, EBITDA of £0.47 million and generated operating cash of £0.47 million.

Churchcom Limited

Churchcom is an energy procurement consultant based in Peterlee, County Durham. Churchcom operates under two trading divisions, Church Energy Purchasing Group, which specialises in energy procurement for churches and Energy Partners, offering energy procurement services for commercial customers, complementing Inspired’s core Corporate Division.

Inspired are paying £1.4 million in cash for Churchcom. For the financial year ended 31 January 2017, Churchcom delivered revenues of £0.64 million, EBITDA of £0.35 million and generated operating cash of £0.47 million. Net assets as at 31 December 2016 stood at £0.24 million. The founder directors of Churchcom have sold the business in order to retire and will leave after a handover period.

Commenting on the acquisitions, Janet Thornton, CEO of Inspired Energy said: “We are delighted to conclude the acquisition of Flexible Energy Management and Churchcom, which are highly complementary additions to the Group’s core corporate division. These acquisitions broaden our customer base, further enhance our sector specialisms and increase our geographical spread. “

The acquisitions are being financed from the Group’s existing financial resources, with funding provided by an extension to the Group’s existing £3.5 million acquisition facility with Santander to £5.1 million.

* OJEU frameworks are framework agreements which govern the procurement process for Public Sector Bodies with the intention of improving the effectiveness of the tender process. The frameworks are subject to the rules of Regulation 33 of the Public Contracts Regulation 2015 which transposes Article 33 of Directive 2014/24/EU.

UK, Kirham, Lancashire & Manchester & Peterlee, County Durham

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