Inspired Energy plugs in to £9m deal

LANCASHIRE energy procurement company Inspired Energy is buying a southern-based rival in a £9m deal.

In what it is AIM-listed-firm’s biggest deal since it became a public company two years ago, Inspired has snapped up STC Energy and Carbon Holdings, an energy bureau, billing and management service provider to large multi-site organisations.

It is paying £5m in cash, issuing 32.8 million shares to the founders of STC, Simon Clayton and Steven Rae, who will remain with the business, while a further deferred consideration of up to £3m will be paid in cash and shares if certain performance targets are met.

In the year ended 31 March 2015, Kent-based STC’s principal and only trading subsidiary, STC Energy Management delivered revenues of £3.8m, EBITDA of £1.7m, pre-tax profits of £1.4m.

Janet Thornton, chief executive of Inspired Energy said: “Inspired continues to go from strength to strength. 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.

 “The acquisition fits perfectly with our stated growth strategy and we believe that the complementary nature of the two businesses makes this a hugely exciting opportunity for the group.  Inspired’s core skills, of energy procurement, risk management and product development will bring savings to STC’s client portfolio when contracts are being renewed.  

“Furthermore, the STC platform and the teams’ ability to manage large complex billing and energy management issues will bring benefits to our current portfolio of clients and also allow us to win larger clients as a combined group.”

Simon Clayton, managing director of STC said: “We believe that by working together, we will open significant new opportunities both in terms of winning new clients but also in bringing benefits and savings to our existing portfolios. In addition, we believe that the combination will further enhance the opportunities for our staff as part of the enlarged group.”  

To give it additional flexibility, Inspired said it had agreed new banking facilities with Santander, including a £10m term loan and a £1.5m revolving credit facility.

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