Meter firm Energy Assets acquires Gazprom subsidiary
Industrial and commercial gas meter operator Energy Assets Group has bought a subsidiary of energy giant Gazprom in a deal worth up to £13.5m.
The Livingston-based firm said the acquisition of Gazprom Global Energy Solutions (GGES) would double its data collection capability.
GGES provides metering, automated meter reading and siteworks services to gas suppliers and blue-chip clients.
The deal will be funded by cash raised from Energy Assets' flotation in March.
The transaction includes an initial cash sum of £6m, with a further payout of £3m depending on the level of data logger installations carried out by Energy Assets.
The rest involves taking on GGES debt of £4.5m, which will be refinanced after acquisition.
Manchester-based GGES manages a portfolio of about 27,000 data points across the gas, water and electricity sectors.
It specialises in automated meter reading technology for both gas and water applications and low power radio data collection technology.'Fantastic opportunity'
The acquisition formalises a long-standing relationship between Energy Assets and Gazprom Energy.
The agreement will see Energy Assets appointed as the primary meter asset manager for Gazprom Energy's UK portfolio.
It has also been granted an exclusivity period, during which it will install new metering assets and undertake meter exchanges across Gazprom Energy's UK portfolio.
Energy Assets currently manages 53,000 meters in the industrial and commercial sector.
Chief executive Phil Bellamy-Lee said: "This transaction provides Energy Assets with a fantastic opportunity to continue the development of the long-standing relationship between the two companies and is a significant step in the delivery of Energy Assets' strategy to increase meter asset management and ownership as set out at the time of the IPO (Initial Public Offering)."