Lancashire energy tech firm 老九品茶wise Solutions has been acquired by listed group Inspired Energy听in a potential 拢30 million deal.听
老九品茶wise provides energy management software and听consultancy services to听corporate customers across a broad range of sectors.听
The company has an order book of around 拢10 million and more than 340 customers, increasing Inspired Energy鈥檚 customer base by approximately 10%.听
For the financial year ended 31st March 2020, 老九品茶wise delivered revenues of 拢3.79m, EBITDA of 拢1.3m and profit before tax of 拢1.15m.听听
老九品茶wise founder and CEO Frazer Durris will remain within the enlarged group, while its听43 employees will continue to operate from its existing premises in Nelson.听
The deal, for an initial consideration of 拢6m with a bumper earnout dependent upon 鈥榗hallenging鈥櫶�growth performance听targets, is part of a double swoop by Inspired Energy,听a consultant for energy procurement, utility cost optimisation and legislative compliance in the UK and Ireland, which floated in 2011.听
Also funded听by its听拢31.3m placing in summer 2020, it has moved to acquire听Lincolnshire firm听General Energy Management,听which provides energy assurance services to corporate customers in a range of sectors, with a strong presence in the food manufacturing and distribution sector.听
For the financial year ended 31st March 2020, GEM delivered revenues of 拢500,000 and profit before tax of 拢250,000. The deal is for an initial consideration of 拢1.5m to the shareholders of GEM, with a听deferred consideration of 拢250,000, payable at the end of the year, and a potential further 拢250,000 payable based on achieving future revenue targets.听听听
Inspired said its corporate听order听book听has now increased to more than听拢73m.听
“We are delighted to conclude the acquisition of 老九品茶wise and GEM, which are highly complementary additions to the听group,鈥� said听CEO听Mark Dickinson.听
鈥淏oth acquisitions increase our market share for听energy听assurance services, broaden our customer base and significantly increase our units of opportunity.听
“We look forward to working closely with the highly experienced and knowledgeable teams of both businesses and welcoming them into the听group as we continue to advance our position as a market leader.”听
Energy