Inspired Energy plc, a leading UK energy procurement consultant to UK corporates, has acquired Simply Business Energy Limited (“SBE”) and KWH Consulting Limited (“KWH”). The two businesses complement the Group’s EnergiSave division and will form part of an enlarged division providing SMEs with competitive energy contracts from a variety of suppliers and it is expected that the Acquisitions will be earnings neutral in the first full year post acquisition and earnings enhancing thereafter.
SBE is a relatively new company which has developed a fully automated, operational online quoting platform for SME customers who are looking to switch their energy supplier. It also has agreements in place with the majority of energy suppliers within the SME sector. The platform is expected to enhance the Group’s offering while also streamlining certain existing back office functions throughout the SME division.
KWH focuses on servicing mid-market SME clients, which complements EnergiSave’s existing service which has a focus on SMEs with 1 to 25 employees. In addition, KWH operates an umbrella broker scheme for British Gas and other energy suppliers, which will further accelerate the development of EnergiSave.
For KWH, Inspired Energy is paying £300,000 in cash, of which GBP50,000 is deferred until January 2015.
The SBE acquisition is a share deal. The initial consideration is comprises 2,000,000 shares in the Group. Then a second payment of up to £300,000 of shares in Inspired based on the financial performance of SBE for the years ended 31 March 2015 and 31 March 2016. In addition, the vendors will receive 5,000,000 share options with vesting criteria based on the financial performance of SBE for the years ended 31 March 2016 and 31 March 2017.
Commenting on the acquisition, Janet Thornton, Managing Director of Inspired, said: “Following the initial rapid growth we experienced with the launch of EnergiSave in mid 2013, this new business stream has delivered strongly for the business and we are delighted to have further strengthened our service offering for our growing SME customer base. These acquisitions complement the strong platform we have established this year and we looking forward to integrating their teams into the Inspired Group.”
UK, Kirkham, Lancashire & Worcester, Worcestershire
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