Sharechat Logo

Gentrack acquires UK-based Evolve Analytics for 23 mln British pounds

Thursday 21st June 2018

Text too small?

Gentrack Group said it agreed to acquire Evolve Analytics, an energy data analysis software and services provider, for 23 million British pounds, or $44.2 million, bolstering its leading position for utility billing and customer information systems in the UK. 

The acquisition, for which settlement is expected on June 29, will be funded through an extension of Gentrack’s debt facilities with ASB Bank, raising it by $47 million from the current $50.5 million, the Auckland-based company said in a statement. 

On the basis that the acquisition is debt funded, the Evolve deal will be “low single digit earnings per share accretive” in the first full year, fiscal 2019, and drive increased growth in future earnings, according to Gentrack. 

Evolve’s senior management, including managing director Alan Duggan, will join the Gentrack UK management team, the company said.

Gentrack has been expanding its business, having last year acquired UK billing and customer information systems firm Junifer Systems for $74.6 million and European airport software developers Blip Systems and CA Plus for about $20.3 million, secured major contracts with two of the UK's 'Big 6' energy suppliers and is working on new projects across its divisions.

Customers of Evolve, which specialises in the identification and correction of settlement and billing errors as well as the accuracy of standing data, include three of the 'Big 6' energy suppliers in the UK, Gentrack said.  

Evolve, which captures data for more than 17 million meter points, is forecast to generate revenue of 3.1 million pounds in the year ending April 30, 2019, of which 58 percent will be recurring revenue, while margins are predicted to top 50 percent, Gentrack said. 

“The combined UK business is well positioned to provide highly innovative, value enhancing solutions to UK energy and water utilities and provides a strong base for expansion into new markets,” Gentrack chair John Clifford said in the statement. 

Indeed, “there is an opportunity to extend this new offering to the Australian and New Zealand markets,” Gentrack chief executive Ian Black said in the statement. The company has more than 200 customers in 36 countries.

Gentrack plans to undertake a fully underwritten pro-rata renounceable entitlement offer to reduce its debt, which will provide flexibility to support future acquisition and growth opportunities, it said. Gentrack has appointed Deutsche Craigs and UBS New Zealand to manage any offer.

Shares of Gentrack recently traded 1.8 percent higher at $7.42. The stock has gained more than 50 percent in the past year. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides
KiwiSaver manager Milford dumps $14m of Facebook shares, stops ads after terror attacks
NZ dollar subsides after early boost from Fed, GDP data
Patience needed for Fonterra's streamlining, says FNZC's Dekker
Agria, Lai fined $220,000 for good character breaches

IRG See IRG research reports