22nd Apr 2014 09:15
LONDON (Alliance News) - Energy Assets Group PLC Tuesday said it has entered an agreement with Bglobal PLC to acquire its BGlobal Metering Ltd subsidiary for GBP2.3 million in cash.
The industrial and commercial gas metering services company said the acquisition is made on a debt free basis, with a working capital adjustment mechanism in place after completion, and the cash consideration includes a GBP200,000 cash completion payment.
BGlobal Metering provides advanced metering technology to the UK instrumentation and control electricity sector, including the supply and installation of smart electricity meters, meter operator services, and the ongoing collection and aggregation of energy data.
The company said that following completion, Energy Assets will provide management services for around 161,000 meters and will retrieve data from around 152,500 meter points across the combined gas, water and electricity sectors in the country.
Energy Assets said the deal would reinforce its position as a leading metering services provider and creates cross-selling opportunities to the wider business.
The company said it is confident the BGM business acquisition will be earnings enhancing within 12 months of the completion date.
Energy Assets said the cost of the deal will be funded from cash reserves in line with the group's strategy of pursuing attractive opportunities and making acquisitions which add value to the business.
Bglobal said in a separate statement that, following a review, it has decided to close its Bsmart Energy Solutions Ltd and Nutech Training Ltd operations, as both businesses have performed poorly in the six months to March 31.
Bglobal said the proceeds from the sale of BGM will be used to repay a convertible loan note issued to Synergy Capital Limited, to pay expenses incurred in connection with the sale and the closure of Bsmart and Nutech, and to provide working capital for the group.
Energy Assets shares were up 3.1% to 335.00 pence, while Bglobal shares were up 1.1% to 6.70 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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