18th Mar 2014 12:35
LONDON (Alliance News) - Inspired Energy PLC Tuesday said it has completed the acquisitions of Simply Business Energy Ltd and KWH Consulting Ltd, businesses that will be combined with its existing EnergiSave division to form an enlarged division providing small businesses with competitive energy contracts from a variety of suppliers.
In a statement, Inspired Energy said it expects the acquisitions to be earnings neutral in the first full year after the acquisitions and to boost earnings after that.
It has paid GBP300,000 in cash for KWH, of which GBP50,000 is deferred until January 2015. It will issue 2 million shares in payment for Simply Business Energy, and the sellers could get up to GBP300,000 more shares depending on whether it meets performance targets. The sellers have also been awarded 5 million share options with the vesting criteria also based on the financial performance of Simply Business Energy.
Simply Business Energy has developed a fully automated, operational online quoting platform for small- and medium-sized enterprise customers who are looking to switch their energy supplier. It has agreements in place with the majority of energy suppliers within the SME sector.
KWH also focuses on servicing mid-market small- and medium-sized business clients. It also operates an umbrella broker scheme for British Gas and other energy suppliers.
"Following the initial rapid growth we experienced with the launch of EnergiSave in mid 2013, this new business stream has delivered strongly for the business and we are delighted to have further strengthened our service offering for our growing SME customer base," Inspired Energy Managing Director Janet Thornton said in a statement.
Inspired Energy shares were up 0.2% at 15.275 pence Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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