Inspired Energy plans to raise up to £35m to acquire the rest of Ignite and take advantage of market conditions to make further buys.
The energy consultancy acquired 40 per cent of Ignite for £5m last year. It aims to buy the remainder for £11m, but may have to pay another £19m in earn outs subject to targets being hit out to 2023.
Ignite clients include Halford’s, Starbucks and WH Smith. Inspired says it performed ahead of expectations last year and in the first quarter 2020, prior to Covid impacts, and thinks it can make further gains from cross selling and integration.
Per a market announcement, Inspired stated: “There significant scope to accelerate its successful acquisition strategy moving forward as there will continue to be M&A opportunities to enhance the Group’s strategic momentum”.
CEO Mark Dickinson stated: “This fundraising will secure the Company’s ability to respond quickly to, and execute, other acquisition opportunities which we believe are likely to emerge over the coming months and would add incremental capability to our growing platform.”
Peel Hunt is joint book runner.