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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Duke Energy assumes full ownership of California-based REC Solar

Duke EnergyDuke Energy, one of the largest energy companies in the U.S., announced today it has acquired full ownership of California-based REC Solar, a provider of renewable energy solutions for commercial customers throughout the country. Details of the deal were not disclosed. Duke Energy first acquired a majority interest in REC Solar in February of 2015.

REC Solar is a nationwide provider of complete commercial, public sector and utility-scale solar solutions, founded in 1997. The company offers all design, engineering, financing and maintenance services in house, allowing for a simple customer experience.

“REC Solar complements our strengths in forming strategic partnerships with customers of all sizes,” said Chris Fallon, vice president Duke Energy Renewables and Commercial Portfolio. “Energy solutions specifically tailored to the commercial consumer will expand renewable energy opportunities for enterprise, municipal, educational and business customers, large and small.”

USA, Charlotte, NC, San Luis Obispo, CA

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E.On to acquire UK energy management and efficiency firm Matrix

German utility E.On has agreed to acquire UK energy management and efficiency firm Matrix. the terms of the deal were not disclosed. The transaction needs the go-ahead from Austrian competition watchdogs and is expected to close next month.

Founded in 2003, Matrix helps businesses reduce their electricity consumption in offices and other commercial buildings by up to 40 per cent by using data stored in its energy management centre.

The energy management centre, which is located in Glasgow, creates a virtual image of the company based on this information which is then analysed to pre-empt any wastage, and currently has 31,000 data connections to customer sites in 22 countries globally.

Matrix employs around 340 staff throughout nine sites in the UK, including its headquarters in Bury.

Herve Touati, chief executive of E.On Connecting Energies which is making the acquisition on behalf of its parent, observed that in addition to expanding its presence in the energy efficiency market, the acquisition bolsters its existing portfolio of services.

He went on to say: “We see tremendous opportunities from the combination of Matrix’s deep data-led building energy expertise with our capital-led energy efficiency and on-site generation capabilities. This will allow us to provide our customers in the UK and continental Europe much greater control of their energy cost.”

In May last year there were media reports that Matrix investor Lloyds Development Capital (LDC) was looking at selling its stake in the company valued somewhere between GBP 60.00 million and GBP 80.00 million. At the time, the Bury-based business had earnings before interest, taxes, depreciation and amortisation of around GBP 8.00 million, according to sources.

LDC, the private equity arm of Lloyds Banking Group, bought a stake in Matrix for GBP 10.00 million in 2010 when the firm was known as Green Sky Energy.

Germany, Düsseldorf & UK, Bury

IHS acquires PFC Energy

ihs_logo_mpInformation company IHS has acquired PFC Energy, a global consulting firm specialising in the oil and gas industry. Its clients are oil and gas operators, national oil companies, service companies, investors, governments and other stakeholders. The terms of the deal were not disclosed.

PFC Energy was founded in 1984 and focuses exclusively on the energy sector, covering all phases of the energy value chain, and the pfc energyassets and activities of key countries and companies. It has 130 professional staff and is based in Washington, D.C. and also maintains offices in Houston, Kuala Lumpur, Moscow, Paris, Beijing and Singapore.

“The acquisition of PFC Energy brings energy information and research depth and strengthens our presence in North America, Europe, Asia Pacific and the Middle East,” said Scott Key, IHS president and chief executive officer. “For more than 25 years, PFC Energy has built a solid reputation as an integrated information, research and advisory firm covering the oil and gas value chain. This gives us the opportunity to expand the IHS presence in high-growth markets, and to leverage the skills and expertise of regionally located research colleagues who will support the growth of critical IHS energy solutions.”

USA, Englewood, CO & Washington, DC

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Ameresco acquires UK energy management business ESP

amerescoAmeresco, an energy efficiency and renewable energy company based in Framingham, MA, has acquired ESP, an energy management consulting company consisting of The Energy Services Partnership and ESP Response, located in Castleford, UK. The terms of the deal were not disclosed.

Founded in 2002 and incorporated in 2009, ESP is a  provider of  energy management solutions, including energy supply, invoice management and demand response services for commercial, industrial, manufacturing and utility customers.

“ESP is an exciting addition to the Ameresco family and will expand our enterprise energy management services to help support our multi-national customers that have additional requirements in the United Kingdom,” said George P. Sakellaris, President and Chief Executive Officer, Ameresco. “With this acquisition, we add local expertise to our EEM team and extend Ameresco’s energy supply and information services for our commercial, industrial and manufacturing customers with offices and requirements outside of North America. We look forward to working with the talented ESP team to further develop and cultivate growth opportunities serving not only Ameresco’s multi-national customers’ needs in the United Kingdom, but also ESP’s clients with offices and facilities in North America.”

“The entire ESP team is very pleased with the opportunity to enhance our delivery of sustainable services to our customers as part of Ameresco and to provide our expertise and services to Ameresco’s EEM customers in the United Kingdom,” said Derek Dixon, Chief Executive, ESP. “This acquisition also provides a great opportunity for our customers to benefit from the additional services and resources offered by Ameresco, a leading provider of energy efficiency and renewable energy services.”

Framingham, MA & UK, Castleford, West Yorkshire

Ameresco’s acquisition history

  • In July 2012, the Company’s wholly owned subsidiary Ameresco Canada Inc. acquired FAME, a privately held company offering infrastructure asset management solutions serving both public and private sector customers primarily in western Canada. The Company made a cash payment of $4,486,950 to acquire all of the outstanding stock of FAME.
  • In December 2011, the Company’s wholly owned subsidiary AIS acquired the xChange Point and energy projects businesses, including automated demand response, from EPS. The Company made an initial cash payment of $4,497,141 to acquire these assets. The purchase price is subject to post-closing adjustments for pro-ration of certain revenue and expense items and for certain indemnity obligations of EPS.
  • In August 2011, the Company acquired Ameresco Southwest (then known as APS Energy Services, Inc.) from Pinnacle West Capital Corporation. The Company made a cash payment of $50,057,113 to acquire all of the outstanding stock of Ameresco Southwest.
  • In July 2011, the Company acquired all of the outstanding capital stock of AEG for an initial cash payment of $11,993,236. The former stockholders of AEG, all of whom are now employees of the Company, may be entitled to receive up to $5,000,000 in additional consideration if AEG meets certain financial performance milestones.
  • In August 2010, the Company acquired Quantum Engineering and Development Inc. (“Quantum”) for an initial cash payment of $6,150,000. During April 2011, the Company made an additional payment of $1,956,366 in accordance with certain provisions of the stock purchase agreement with the former shareholders of Quantum.

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

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Energy Management Transactions from Fusion

Smart Metering Systems plc – results for the year ended 31 December 2012

Smart Metering Systems plc, a metering services company has announced final results for the 12 months to 31 December 2012.

Financial Highlights

  • Revenue increased by 32% to £21.0m (2011: £16.0m)
  • Recurring meter rental increased by 40% to £9.3m (2011: £6.6m) representing 44% of total revenue
  • Gross profit increased by 50% to £13.3m (2011: £8.9m)
  • Gross profit margin increased by 8% to 63%
  • Adjusted EBITDA* increased by 59% to £9.0m (2011: £5.7m)
  • EBITDA margin increased by 7% to 43%
  • Basic earnings per share increased by 77% to 5.18p (2011:2.93p)
  • Final dividend of 1.15p per ordinary share making 1.65p for the full year
  • New banking club arrangement announced on 2 August 2012 for £45.0m with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and Lloyds Bank PLC, replacing all existing facilities
  • Available cash resources of £31.1m at 31 December 2012

(*Excluding exceptional items and fair value adjustments).

Operational Highlights

  • Total meter portfolio increased by 34% to 341,000 (2011: 254,000) of which 95% are domestic, with substantial growth since half year (H1 2012: 283,275) and currently over 365,000
  • Increase of 74% in capital investment in meter assets to £16.0m (2011: £9.2m) an increase in average monthly run rate of meter installations to £1.3m investment in 2012 (2011: £0.76m)
  • Increase in annualised recurring meter rental revenue as at 31 December 2012 of 42% to £10.8m (2011: £7.6m) and at 28 February 2013 £11.5m.
  • Increase of 26% in Asset installation revenue to £11.8m (2011: £9.4m) of which Gas Connection business increased turnover by 10% to £6.5m (2011: £5.9m)

Alan Foy, Chief Executive Officer, commented: “In our second year since our AiM admission we have delivered another strong set of results against our strategy of ongoing accumulation of meter assets and the introduction of our smart meter technology ADM™. Our second half performance in particular has been very pleasing building on contracts won in 2011 and 2012. We continue to strengthen our team and our financial resources and look to 2013 for another successful year.”

More information here.

UK, Scotland, Glasgow