Inspired Energy makes £4m move for rival
INSPIRED Energy, the Lancashire-based energy broker which floated on the stock market in November, is buying Bolton-based competitor Direct Energy Purchasing for up to £4m.
The firm is paying an initial £2m for the Direct Energy Business – £1.25m in cash and £750,000 in shares. It will pay up to £1m a year by the end of March 2013 and 2014 if the business hits performance targets.
Inspired Energy has also raised £1m by way of an oversubscribed placing of its shares by Shore Capital at a price of 3.5p per share. Some of this will be used to help fund the acquisition, as well as providing general financing for the enlarged group.
DEP was founded by Corin and Tricia Dalby in 1996 to advise clients on energy usage. In the year to March 31, 2011, it had sales of £1.2m and pre-tax profits of £700,000. By the end of December 2011 it had a forward order book of £1.7m.
The company employs 18 staff and has 68 customers. Inspired Energy said that it it expects the deal to be earnings enhancing in its current financial year.
Managing director Janet Thornton said: “We are delighted to conclude our first acquisition since our admission to AIM in November 2011. The acquisition of DEP complements our growth strategy, providing access to new sector specialisms as well as increasing our average size of client and geographic reach.
“In addition, we are delighted to have received such strong support for the acquisition from our shareholders which allows us to continue the implementation of our strategy and we look forward to further growth in the future.”
