eEnergy Group plc is to acquire Beond Group Limited, a UK renewable energy consulting and procurement business.
Beond, based in West London, helps its clients to transition to the lowest cost zero carbon energy available in the market. Working with small businesses to large corporates and public sector organisations it runs competitive reverse auctions through its proprietary technology. This ensures that its clients have access to the lowest prices across the market while achieving their net zero energy ambitions. It offers a Risk Managed service for clients that wish to have access to the energy wholesale markets and implements hedging strategies to help protect against rising market prices.
The total consideration for the Acquisition (which includes £0.7 million of surplus cash in the business) comprises approximately £2.4 million in cash and the issue of 64,948,456 consideration shares.
For the year to 31 December 2019, Beond’s revenue grew 10.5% to £3.3 million, with EBITDA of approximately £0.5 million at a margin of 14.1%;
eEnergy Group expects Beond to generate:
- revenue growth at an annual average rate of 22% from the year to 31 December 2020 to 31 December 2022
- base case EBITDA for the year to 31 December 2021 of approximately £0.8 million;
- EBITDA margin improvement from 14% for the year to 31 December 2019 to 28% for the year to 31 December 2022;
The cash component will be funded through a placing of a minimum of £3.0 million to new and existing institutional and other investors, at a Placing Price of 10.0 pence per placing share.
CEO of Beond, Derek Myers, is expected to join the Board of eEnergy on completion of the acquisition.
An integration team, led by new (non-Board) Chief Operating Officer, Robert Van Leeuwen, is expected to work closely with the Beond management team and oversee initiatives to accelerate growth.
Harvey Sinclair, CEO of eEnergy, commented:
“The acquisition of Beond is the next step in our journey to delivering a sustainable future for our clients. Beond’s, a climate action business, leverages award-winning technology to secure the best zero carbon energy supply for their customers. With a focus on energy management, their technology will add significant value to eEnergy’s existing client base by helping to make ‘Net Zero’ a reality. Beond’s platform is one of a very small number of specialised reverse auction technologies available to customers, securing the best priced zero carbon energy through a highly competitive auction process.
eEnergy, listed on AIM, is the parent company of eLight and RSL, which help businesses and schools switch to energy-efficient LED.