1st Oct 2015 06:42
LONDON (Alliance News) - Energy technology company Intelligent Energy Holdings PLC on Thursday said it has struck a deal to acquire the energy management business of GTL Ltd, which provides energy to telecommunications towers in India, as it said trading had accelerated in the second half of its financial year.
Intelligent Energy said the acquisition of the business, for around GBP85 million, will strengthen is Distributed Power and Energy division and will provide the company with a customer base to which it can start rolling out its fuel-cell technology. Intelligent Energy said the deal provides a major platform for fuel cells to be deployed as a distributed power service.
The company said it will fund GBP25 million of the consideration, with the remainder to be financed from debt funding secured against the revenue stream of the energy management business. Intelligent Energy expects to earn around GBP120 million in revenue per annum and to make estimated earnings before interest, taxation, depreciation and amortisation margins pre-financing of around 15% on the acquired business.
"This is a major day for Intelligent Energy. We have not just announced a landmark transaction for Intelligent Energy, but a transaction which is important for the fuel cell industry itself," said Henri Winand, Intelligent Energy's chief executive.
Should the company earn the expected GBP120 million a year from the acquisition, it would more than double its current revenue base, which it expects to be around GBP77.4 million for the year to the end of September. This comprises the GBP27.4 million it made in the first half and the more than GBP50 million in second-half revenue it expects to report, following robust revenue growth in the second half from all of its divisions.
By Sam Unsted; [email protected]; @SamUAtAlliance
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