Esyasoft agrees to acquire Good Energy in £99.4 million deal

LONDON: Esyasoft and Good Energy have reached an agreement on the terms of a recommended cash offer by Esyasoft for the entire issued and to be issued ordinary share capital of Good Energy, the companies announced Monday. The transaction will be carried out through a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act.

Under the terms of the deal, Good Energy shareholders will receive 490 pence in cash for each Good Energy share, valuing the company at approximately £99.4 million on a fully diluted basis. The acquisition also implies an enterprise value of around £67.8 million.

The boards of both companies have recommended the offer, which is expected to bring significant benefits to shareholders and pave the way for future growth.

The Esyasoft Group serves the power, water and gas markets. Its industry leading Smart Meter Data Management platform, which is rated consistently in the Global top 10 by Gartner, serves more than 25 million consumer meter connections and this is projected to grow to approximately 50 million by 2026.

The Esyasoft Group is a pioneer in supplying AI-powered technology and analytics solutions for worldwide energy transition projects. It also works with large utility companies in the UK, Europe, UAE and India and is expanding its international business.

In the last ten years it has also grown its capabilities substantially, including vertical integration into smart meter manufacturing, renewable energy services integration, mobility solutions, EV charging, energy storage and climate technologies. As a result of this expansion, it is transforming into a smart “Energy-as-a-Service” (“EaaS”) business.

Since 2019, Good Energy has transitioned from a green energy supplier to a green EaaS business as it has expanded into heat pump and solar panel installation and servicing. As such, the Esyasoft Group believes there is a high degree of convergence between its business model and Good Energy’s and a high degree of complementarity between its markets, products and expertise and those of Good Energy.

Bipin Chandra, CEO and Founder of Esyasoft Holding, said: “What strikes us about Good Energy is how aligned it is both strategically and culturally with our own business. Good Energy, like Esyasoft, is driven by a vision to deliver a smart, green and sustainable energy future for all. We have a strong track record of supporting businesses involved in critical energy infrastructure and climate technologies, and therefore our portfolio of services is highly complementary to Good Energy’s. We believe that through our strategic partnership, we can support Good Energy in accelerating delivery of its purpose and growth ambitions by realising the extensive opportunities that exist for this business both in the UK and internationally.”

Commenting on the Acquisition, Nigel Pocklington, CEO of Good Energy, said: “Good Energy has had the same express purpose to power a cleaner, greener future for 25 years. Today we have an opportunity with a partner that shares our sustainable energy vision and has the resources to accelerate our purpose substantially. Whilst the Board remains confident in Good Energy’s strategic delivery as a publicly listed company, Esyasoft’s financial resources, in addition to its presence in new markets, present a significant increase in our potential. The offer values the Company at a significant premium, offering shareholders a good return for their support for the Company. The Board is recommending the offer – a good deal which will ramp up the Company’s renewable purpose.”

Commenting on the Acquisition, Will Whitehorn, Chair of Good Energy, said: “The Board unanimously recommends this offer to shareholders as not only does it represent good value in return for their support for the Company, it provides an opportunity for the business to accelerate its purpose and impact. Good Energy has undergone a strategic shift in recent years to become a full clean energy services business, and whilst the Board believes it is now strongly positioned to grow as a listed company, there are restrictions and associated costs to doing so. Through the course of discussions with Esyasoft, we have negotiated what we believe to be a fair valuation from a potential owner which has an aligned mission and the resources to support Good Energy in becoming a success story as not only the go-to British company for all renewable energy services, but also a leading global renewable energy brand.”

Commenting on the Acquisition, Juliet Davenport, Founder and former CEO of Good Energy, said: “I founded Good Energy 25 years ago to be a pioneer in the provision of clean power to all customers in the UK. The energy industry back then was very different, founded around fossil fuels and designed to be a centralised system.

This new investor for Good Energy offers an opportunity to scale the Good Energy propositions leading the decentralised and flexible clean power offering for the prosumers of the future to make a real difference to climate change.”