Bglobal boss hails £12.8m Utilisoft swoop
SMART metering group Bglobal announced a “transformational” deal today as it revealed plans to buy its close neighbour Utilisoft for up to £12.8m.
The AIM-listed company, based in Darwen, Lancashire said the deal to buy Blackburn-based Utilisoft, formerly known as Formfill, would allow it to offer customers a fully integrated service, from metering to billing.
In the eight months to the end of November 2009 Utilisoft made a profit of £612,000 on turnover of £4.07m.
Tony Barnes, the former TV newsreader and now chief executive of Bglobal, told TheBusinessDesk: “This is a big day for us, it will transform the business. Utilisoft is a business we know very well. I believe the acquisition creates something that is unique in this country and in Europe.
“We are creating the UK’s premier energy data solutions business positioned to deliver the full end-to-end smart energy solutions that we believe our UK customers and markets all over the world will demand.”
He said the enlarged group – which will be run as two entities – would have 230 staff.
The the rationale for the deal is to create a a full service, end-to-end smart energy value chain of products, services and new software applications which will help to build Britain’s low carbon, smart energy future.
Utilisoft was founded by Peter Kennedy and Martin Evans – both of whom have strong links to Bglobal. Mr Kennedy is on the board, while Mr Evans is a former director.
Both men are substantial shareholders and with Mr Kennedy’s son, Nick, own 38.5% of Bglobal’s shares.
The vendors will receive an initial sum of £5.3m, of which £4.3m is cash and £1m in shares.
A further £7.5m will be paid according to the performance of Utilisoft is the year to March 31 2011. This would be made up of £4.125m in cash and up to £3.375m in new Ordinary Shares.
The acquisition is being funded by a £6.5m placing of shares at 38p and a £1.5m open offer where existing investors can apply for one new share for every 20 they own at 38p.
Due to the size of the Kennedys and Mr Evans’ shareholdings they have been given permission by the Takeover Panel not to have to make an offer for Bglobal.
Gary Houghton and Russell Armstrong at Baker Tilly Manchester carried out financial due diligience for Bglobal.
