SYDNEY, AUSTRALIA: Energy One, global supplier of Energy Trading and Risk Management (ETRM) software systems and services, has signed a share purchase agreement to acquire 100% of EGSSIS. The cost of acquisition is €4.25 million over 18 months.
Based in Belgium, EGSSIS is an established, profitable company. The acquisition will be funded using existing facilities, internal funds and equity issued to the vendors. As such the transaction will be immediately earnings accretive with further synergies to follow.
Egssis provides SaaS software and “on behalf of” 24×7 scheduling and nomination services for European power and gas. Typical clients include power and gas utilities but also larger commercial and industrial companies.
Combining Egssis with eZ-nergy and Contigo will place the company at the forefront of the European (gas and power) energy trading, scheduling and nominations markets.
“Looking forward to the next full financial year, FY23, we expect Egssis will generate income of approximately AUD$5.9 million and EBITDA of AUD$1 million. While immediately earnings accretive, synergies will continue to emerge over the next couple of years. We expect Egssis proforma EBITDA will be approximately $1.35 million by FY24,” company noted in a presentation.
“Egssis is a great business, providing high quality software and services to the European energy trading market and we are very excited to welcome them into the family. Our European businesses comprise a strong and highly-capable team for pan-European energy trading solutions, assisting customers operating in Europe’s fast paced 24/7 wholesale energy markets. I’d like to welcome Tom Dufraing, MD of Egssis to our European leadership team alongside Johann Zamboni of eZ-nergy and headed up by Simon Wheeler, our European CEO,” said Shaun Ankers, Group CEO.
Energy markets are decarbonising and decentralising. In the future there will be fewer large generation units and more distributed energy resources.
For example rather than a single 2,500MW thermal coal generator there might be 5 x 200MW solar farms plus 5 x 200MW wind farms combined with 5 x 200MW batteries. This fragmentation is referred to as distributed energy resources.
The growing share of green distributed power generation increases the complexity in both the European and Australian energy markets. Given the smaller size of distributed energy resources it is often uneconomical for operators to man 24/7 control rooms to dispatch energy. Furthermore, the two-sided market (users also nominate) is active in Europe and coming to Australia.
Energy One Limited (ASX:EOL) is a leading independent global supplier of Energy Trading and Risk Management (ETRM) software systems and services.
Energy One Limited share price
6.27 AUD+0.96 (18.08%)today
1 Oct, 4:10 pm GMT+10 ·Disclaimer