Building energy management solutions company EPX (ASX: EPX) has satisfied all the conditions required to acquire Australian energy efficiency platform WattWatchers, which was recently placed into voluntary administration.
EPX submitted a deed of arrangement proposal to the administrators this month outlining an acquisition price of $1.05 million, of which it will pay $550,000 in cash and the remaining $500,000 in fully-paid shares at $0.32 per share.
WattWatchers generates recurring revenue through device subscriptions and data platform services, creating a scalable business model.
EPX expects the acquisition to add up to $3 million to its bottom line, almost doubling the company’s Australian returns in its core energy monitoring market segment.
Broadening Capabilities
“The acquisition of Wattwatchers continues to add proprietary functionality and capability to our business to meet those customer needs,” EPX chief executive officer John Balassis said, adding that the company was broadening its capabilities as customers navigate their sustainability and building performance needs.
Founded in 2006, WattWatchers provides real-time energy management and monitoring solutions to help businesses, households, and utilities optimise their energy performance.
Its core platform combines Internet of Things-enabled hardware devices with a cloud-based analytics suite, enabling users to capture, visualise, and control granular energy data across multiple sites and assets.
This data-driven capability underpins improved energy efficiency, reduced energy costs, and enhanced visibility into distributed energy resources such as solar panels, battery storage, and EVs.
Placement and SPP
EPX has received commitments from new and existing institutional shareholders for a $2.14m share placement and $700,000 share purchase plan (SPP) to support the WattWatchers acquisition.
The placement will see the company issue 8.57 million new shares priced at $0.25 each, representing a 20% discount to the company’s 20-day volume weighted average price.
The share purchase plan will be conducted at the same issue price and offered to eligible shareholders within Australia, New Zealand, Sri Lanka, the Netherlands, and the UK.
“We are thankful for the support of our institutional shareholders as they have placed EPX in a great position to continue to expand organically and through appropriately identified and scoped mergers and acquisitions,” Mr Balassis said.
