Energy One expands into EU with eZ-nergy acquisition

Energy One eZ-nergy ASX EOL
Energy One plans to acquire French software as a service company eZ-nergy for €4 million (A$6.41 million).

Energy One (ASX: EOL) will acquire 100% of French software as a service company eZ-nergy under a share purchase agreement worth €4 million (A$6.41 million).

Currently supplying software and services to energy, environmental and carbon trading markets, Energy One expects to expand its market with the acquisition of eZ-nergy, which sells its products to utility customers across Europe.

Energy One plans to fund the acquisition via bank debt and equity of about €500,000 (A$800,000).

Once the acquisition has been completed, Energy One anticipates eZ-nergy will contribute about A$4 million in additional revenue including A$1.3 million in earnings before interest tax depreciation and amortisation.

This figure is without any potential consolidation benefits and synergies that may arise out of the acquisition.

eZ-nergy

Headquartered in Paris, eZ-nergy has 44 market customers across eight countries and a staff of 18.

According to Energy One, eZ-nergy’s software is developed in the same language as Energy One’s Contigo software and it is expected the two products will be “highly complementary”.

Energy One plans to integrate the Contigo and eZ-nergy businesses to leverage technical and marketing resources and increase sales.

Legal and operational due diligence have been completed on the acquisition with final regulatory approvals anticipated to be received in the next two-to-three months.

Contigo Software

Late last year, Energy One acquired UK-headquartered Contigo, which supplies energy trading and risk management (ETRM) software.

Contigo has 46 staff and has completed more than 45 client installations across both the UK and EU, with 34 installations completed in the UK alone.

The company’s three key products are the award-winning enTrader ETRM system, the envoy integrated energy nomination and scheduling platform, and enPrice, which is a retail pricing engine enabling reliable calculation and conversion of forward wholesale bulk energy prices into retail prices.

The eZ-nergy acquisition news boosted Energy One’s share price by 8.70% to trade at $2.50 mid-morning.