Inspired Energy acquires Informed Business Solutions

inspired-logo3Inspired Energy PLC has acquired Informed Business Solutions Limitedan energy procurement and environmental services provider, for an initial consideration of approximately £2.25  in cash and shares. Informed Business Solutions provides its services provider to large and multi-site corporates. It has a particularly strong presence in the multi-site retail and leisure markets.  Both companies are based in Kirkham, Lancashire.

Inspired are paying an initial consideration of £1.75 million in cash and issuing 3,545,596 new ordinary shares to the shareholders of Informed. Deferred consideration of up to £2.0 million may also be paid subject to financial performance criteria based on both the contracted order book and revenue for the financial years ending 31 December 2017 and 2018. The Deferred Consideration will be payable in four tranches of up to £0.5 million each.  Two tranches, in relation to the financial year ending 31 December 2017, will be payable in July 2017 and February 2018.  A further two tranches, in respect of the outturn for the year ending 31 December 2018 will be payable in September 2017 and July 2018. 

The directors of the business will remain with the enlarged group. Their shares are subject to a 12 month lock-in and orderly market provisions for a further 12 months from the date of admission.

For the audited financial year ended 31 December 2015, Informed delivered revenues of £1.7 million, EBITDA of £0.7 million, pre-tax profits of £0.7 million and generating operating cash of £0.8 million. Net assets as at 31 December stood at £0.5 million. 

Commenting on the Acquisition, Janet Thornton, CEO of Inspired Energy said: “We are delighted to conclude the acquisition of Informed which is a highly complementary addition to the Group’s core corporate division. The Acquisition broadens our customer base, further enhances our sector specialisms and strengthens our service offering within environmental consultancy. We look forward to working closely with the highly experienced and knowledgeable team of Informed and welcoming them into our core Corporate Division as we seek to advance our position as a market leader.”

UK, Kirkham, Lancashire

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Inspired Energy acquires STC Energy and Carbon Holdings

inspired-logo1Energy procurement company Inspired Energy PLC has acquired STC Energy and Carbon Holdings Limited, an energy bureau, billing and management service provider to large multi-site organisations for an initial consideration of approximately £9 million in cash and shares.

stc-logoThe consideration comprises an initial payment of £5 million in cash and the issue of 32,786,885 new ordinary shares in the capital of Inspired Energy.  The Shares are being issued to the founders of STC, Simon Clayton and Steven Rae, who will remain with the enlarged group and will be subject to a 12 month lock-in and orderly market provisions for a further 12 months from the date of admission.  Simon Clayton will hold 26,229,508 ordinary shares, which will represent 5.56 per cent. of the enlarged group’s issued share capital on admission of the new Shares.

A further contingent consideration of up to £3 million may be payable, in cash and shares in a ratio of 50:50, if certain targets are hit for the period ending 30 September 2017.

In the audited financial year ended 31 March 2015, STC’s principal and only trading subsidiary, STC Energy Management Limited delivered revenues of £3.8 million, EBITDA of £1.7 million, pre-tax profits of £1.4 million and generated operating cash of £1.6 million.

Kent based STC provides a complete range of energy services to help organisations manage their utilities more effectively. In particular, STC has developed a range of energy bureau products and services  aimed at larger UK corporates or organisations with extensive property portfolios or complex billing environments. In addition, STC’s other services include: utility procurement; carbon compliance services; site works and metering; and general energy management consultancy.

STC’s clients range from large multi-site retailers to county councils and housing associations, with property portfolios ranging between 25 and 4,000 individual sites.

STC’s revenue model is predominantly led by fees charged directly to clients in respect of bureau and billing services.  The company has a retention rate on clients of in excess of 90 per cent.  STC also has a commission based revenue stream for energy procurement services, paid directly by suppliers.

Janet Thornton, CEO of Inspired Energy said, “We are delighted to conclude the acquisition of STC, which increases the breadth of our target customer base, enhances our sector specialism including the Public Sector and larger multi-site clients and expands our service offering for our corporate customers and provides geographical diversification.”

In order to fund the cash component of the initial consideration and to provide additional financial flexibility for the Group, Inspired has entered into a new facility agreement with Santander UK plc for a £10 million term loan. The Facility replaces the Group’s previous £5 million term loan facility and £0.6 million of drawn RCF facilities, thus increasing the Group’s indebtedness by £5 million when drawn down.

In addition, the Group has also entered into a revolving credit facility, also with Santander, for the sum of £1.5 million, of which £0.6 million is drawn, to be used for the purposes of satisfying future working capital requirements  and an acquisition facility of up to £3.5m to fund future Group acquisitions.

UK, Kirkham, Lancashire & Bromley, Kent

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World Fuel Services acquires Bergen Energi

WFSWorld Fuel Services Europe, Ltd., a wholly owned subsidiary of World Fuel Services Corporation (WFS), has acquired Bergen Energi, a European energy management services company based in Norway. The terms of the deal were not disclosed.

WFS has a well-established energy services business in North America. The acquisition of Bergen Energi will facilitate an expansion of these services to customers across Europe.

BergenBased in Bergen, Norway, Bergen Energi offers energy procurement, energy risk management, energy data management and energy consultancy services. The company was founded in 1991 when Norway became the first country in Europe to liberalise its electricity market.

WFS is headquartered in Miami, Florida. The company is a global fuel logistics and transaction processing company, principally engaged in the distribution of energy products and services in aviation, marine and land at more than 8,000 locations worldwide.

Bergen Energi will continue to operate under the same name. The main shareholder and former CEO Bill Schjelderup has been replaced by WFS’s Terry Cogan as new CEO.

USA, Miami, FL & Norway, Bergen

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Utilitywise plc Final Results

utilitywiseUtilitywise plc, an AIM listed, independent utility cost management consultancy, has announced its audited full year results for the year ended 31 July 2015.

 Highlights:

  • Revenue: £69.1M (2014 – £48.9M) up 41%
  • Gross profit: £30.3M (2014 – £22.4M) up 35%
  • EBITDA: £17.8M (2014 – £14.5M) up 23%
  • Profit before tax: £16.7M (2014 – £13.4M) up 25%
  • Continued investment in multi-channel routes to the customer
  • Management strengthened with appointment of new COO, Brin Sheridan
  • t-mac Technologies acquisition completed in April
  • UK customers now exceeds 27,000
  • Review of accounting procedures to enable more accurate consumption variance tracking

Geoff Thompson, Chief Executive of Utilitywise, commented:

“The past year has been one of continued progress. We have maintained our growth aspirations and we are well advanced in the roll out of our multi-channel approach to the entire addressable market. We have complemented our capabilities in the year with the acquisition of t-mac Technologies and now can take a customer through the entire journey of procuring their energy, ensuring compliance, monitoring and reporting usage, and controlling and reducing their energy consumption. 

Our management team has been further strengthened and I am delighted to welcome Brin Sheridan to the Group. Brin will assist us along with the rest of the Executive team to deliver this exciting opportunity we have to increase our market share.

We have slowed and refocused our recruitment in recent months to ensure that we have the highest quality of staff capable of delivering our Trusted Advisor strategy effectively and increasing our new customer conversion rates. Since period end the Group’s UK customer base has increased further to 27,265 as at 30 September, with a corresponding increase in secured but not yet recognised revenue to £28.3 million as at 30 September compared to £26.2 million at period end.

Our outlook for the coming years remains extremely positive and we look forward to welcoming thousands of new customers to the services and products we can deploy to help them  optimise their energy usage and to save money.”

For more information click here

UK, North Tyneside

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Management Buy Out of The Energy Brokers Limited

TEBLThe Energy Brokers Limited (TEBL) a specialist energy procurement consultancy has been acquired by The Consultus International Group Limited in a Management Buy Out led by its Managing Director, Andrew Staley. The terms of the transaction have not been disclosed.

andrew-staleyTEBL is a specialist energy procurement consultancy that focuses in the Industrial & Commercial (I&C) sector arranging and managing electricity and gas contracts on behalf of its clients with energy suppliers. It operates predominately in the UK but has been steadily increasing its foothold across the European marketplace. In the UK it has been assessed by an independent party who ranks TEBL joint 2nd in the Cornwall Energy I&C TPI Index.

Based in Leicester TEBL was setup in 1994, following de-regulation of the UK’s electricity & gas markets. During this time it has grown and developed a dedicated and specialised energy procurement team serving many business sectors across a range of organisation sizes. TEBL was setup and led by the former Managing Director, Bernard Messore and its Non-Executive Directors; David Booth, David Dyer, Jane Messore and Roy Warner.

Whilst TEBL has a relatively new management team in place it remains under the guidance of Andrew Staley, who has managed the business since 2009. The new management team consists of industry professionals, who now form the board and are driving the business forward. As part of this deal Consultus has also acquired The Waterbuyers Limited, which is a newly formed Company that will be used to expand the operations of the Group into other areas such as; Water, Energy Efficiency and Internationally.

Clydesdale Bank supported the management buy-out through the provision of debt facilities. Andrew Staley said “we went out to the marketplace for the debt facilities, Clydesdale came back promptly with a competitive offer that not only met our request, but exceeded it by providing additional flexibility. I’m very pleased to be working with Chris (Harris) and the team at Clydesdale.”

UK, Leicester

UES Energy acquired by Inprova Group

inprova-logoInprova Group has acquired UES Energy, a procurement outsourcing service company based in Caerphllly, Wales. The terms of the deal were not disclosed.

UES Energy was founded in 2003 by Andrew Padmore. Andrew Diplock joined him a few months later. Andrew Diplock, Managing Director and Gruff Dodd, Finance and Operations Director later led a management buy-out; and at the time of the acquisition, were the main shareholders. Andrew Diplock and Gruff Dodd will join the senior leadership team at Inprova’s energy division.

UESThe company has built a significant client base across the UK in areas like manufacturing, food, education, service and leisure. It procures and manages over £150m of energy contracts on clients’ behalf, with an expected turnover of over £2m this financial year.

The deal, funded through a debt facility from Barclays, follows Inprova Group’s acquisition of two non-domestic energy brokers, energyTEAM and ENER-G Procurement, in April. The two have since been integrated into Inprova’s new energy division, branded energyTEAM. UES Energy will become part of the energy division over the next 12 months.

Paul Kennedy, Inprova Group Chief Executive, said: “This deal further consolidates Inprova’s growing energy services offer and brings us closer to our ambition to be among the top five TPIs in the country. UES Energy complements the world class services, expertise and knowledge we already have in our new energy division and will enable us to continue to expand our service offer to existing customers and reach new markets.”

UK, Caerphllly, Wales

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Yardi acquires energy information and procurement company MCEnergy

MCEnergy logoYardi, a real estate and property management software company, has acquired MCEnergy, an energy information and procurement company based in Valhalla, N.Y. The terms of the deal were not disclosed.

MCEnergy energy management services include contract negotiations with leading electricity, natural gas, fuel oil and green energy supplierss. Turnkey submetering solutions and energy and environmental tracking software give property managers access to energy, environmental and sustainability data and information.

“Yardi continues to focus on advancing our clients’ energy-related objectives by providing options to actively manage consumption, cut costs and support environmental initiatives within a single full-business software platform. Acquiring MCEnergy is the latest step toward that goal, and we look forward to welcoming their energy, real estate and software expertise to Yardi,” said Gordon Morrell, executive vice president of Yardi.

USA, Santa Barbara, CA & Valhalla, NY