Inspired Energy has paid £5m for a 40 per cent stake in Ignite Energy and has a two-year option to acquire the remainder of the company.
The deal sees Inspired bring clients including Halford’s, SSP, Network Rail and WH Smith into its portfolio. The third party intermediary said Ignite’s specialism in energy efficiency projects and optimisation services would also benefit existing clients. The optimisation market is relatively immature, noted Inspired.
The price could rise to £8m subject to performance clauses. Should Inspired decide to acquire the rest of Ignite, it will pay 6.0 x Ebitda, subject to a maximum Ebitda of £7m.
Inspired CEO, Mark Dickinson, said Ignite is “highly complementary to Inspired’s core Corporate Division” and the deal “significantly broadens and accelerates our optimisation service offering”.
“Ignite has proven itself, over many years, to be capable of achieving material improvements to the energy efficiency of its clients. Inspired currently has over 500 clients within the estate and energy intensive segments who meet the Ignite customer profile, and could benefit from the services that Ignite provides.”
Ignite director, David Higgins, said the companies’ combined capabilities would enable “significant new opportunities both in terms of winning new clients but also in bringing benefits and savings to our existing portfolios.”
Ignite employs around 50 people across three locations. It provides large scale energy demand reduction projects, ranging from building management system installation, local space control systems, plant efficiency measures and lighting upgrades.
Inspired has made a number of acquisitions in recent years as it bids to become the dominant UK TPI.