EP&T Global expands into UK market with Coda Cloud acquisition

Energy optimisation company EP&T Global (ASX: EPX) has entered into a $235,000 agreement to acquire UK-based commercial energy monitoring company Coda Cloud in a deal the company sees as an expansion opportunity into key growth markets.

Upfront consideration for the deal will comprise $118,000 in cash and the issue of 3.5 million shares at $0.033 each, representing a 43% premium to EP&T’s last trading price of $0.023.

It will cover the acquisition of all intellectual property, including the registered patents of Coda and its associated technologies, a pipeline of customer businesses which have been utilising Coda’s technology up to April 2024 and inventory with a book value of approximately $577,000.

Bonus consideration

A one-off bonus consideration will be offered, comprising a $577,000 payment in cash and shares if recurring revenues from any individual customer should reach more than $962,000 within 12 months of the acquisition.

Performance payments will also be incorporated based on revenues generated through to December 2027.

On-boarding and running costs for the first 12 months post-acquisition are projected to be $384,000 and will see a number of former Coda staff members moving over to EP&T’s UK office.

Energy monitoring

Coda’s technology is installed at over 200 UK sites to monitor, manage and control energy usage in transport depots, train stations and power-intensive sites such as telecommunication centres.

The company has previously acknowledged that it lacks the organisational structure to further invest in the development of its own technology and has welcomed EP&T’s proposal to acquire its business.

EP&T plans to initially focus on servicing industrial customers with intense energy consumption requirements or harsh operating environments, such as rail and transport entities and telecommunications and data centre owners.

Key market vertical

EP&T chief executive officer John Balassis said the Coda acquisition presented an “exciting opportunity” to expand into a key market vertical.

“EP&T has transformed financially over the last 18 months and opportunities to expand our reach in attractive locations such as the UK and Europe are emerging,” he said.

“I believe we are well-placed to pursue these opportunities and drive value for our shareholders.”