Thursday 30th August 2018
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Vector has agreed to buy Vircom Energy Management Services to help maintain a national service for residential and commercial smart meters.
Vircom, owned by Rangiora-based lines company MainPower, has offices there, Auckland, Nelson and Napier. Formed in 2004, it has completed more than 2.6 million smart meter jobs, including many thousands for Vector during the past decade.
Vector chief executive Simon Mackenzie said that, with the firm’s mass smart meter deployment complete in New Zealand, it was time to adopt a new model for the next decade.
“We feel we can further develop the already strong contractor partnerships which both Vector and Vircom have built, which will benefit the industry as a whole,” he said in a statement.
No price was disclosed for the transaction which is expected to settle next month. MainPower declined to say whether it would book a profit on the sale, saying its focus was on working through the sale and purchase agreement.
Last week Vector said it installed almost 85,000 smart meters locally in the year ended June, and had largely completed its mass-market roll-out. That said, it still expects to install up to another 70,000 this year, reflecting strong new home construction.
MainPower chief executive Andy Lester said Vircom’s sale to Vector is a logical step which should provide a strong future for the business and its staff.
The company said the sale followed a strategic review and was not related to the slowdown in Vector’s meter roll-out. The companies had been in discussions for about nine months.
MainPower will retain a small contract with Vircom and said it will talk with the firm’s 60 staff in coming weeks on their options for joining Vector.
“Our people are valued by Vector, which initially led to sale discussions,” MainPower said in an emailed statement.
Vector shares rose 7 cents to $3.49 – their highest close since December.
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