The energy group will raise £30m through a fast-tracked book-building process, together with a further £5m through an open offer for shareholders not able to participate in the book-building.
The update also made known that the group has agreed conditionally to acquire the outstanding 60% of Ignite Energy, in Wantage, Oxfordshire, not already owned by it, for an opening consideration of £11m.
The agreement comprises a further consideration of up to £19m in cash and shares, albeit, subject to performance criteria in Ignite Energy’s financial performance to the fiscal year 2023.
Inspired Energy stated that the fundraising is to finance the initial acquisition deal, providing further financing for more acquisition opportunities to speed up the company’s growth strategy in, Environmental Social Governance, which it believes is of growing importance.
Corporate energy spend it said, in the UK is assessed to be £17.7bn, which is a high value item and corporate customers required assurance that they have bought professionally, accounted for their energy correctly and also complied with any legal obligations.
The development of the energy group’s markets is being brought forward by coronavirus disruption and it is this that is offering an unprecedented opportunity to accelerate its strategic plan.
Inspired Energy in addition, released a second quarter update as part of the announcement today, which showed that revenue decreased by approximately 9% and adjusted EBITDA by about 49%, reflecting the impact of the coronavirus pandemic on customer activity and energy usage.
Conditional on no material deterioration in conditions, the group’s board intends to recommence payment of dividends with the declaration of an interim dividend to be announced with the first half results in September.
Chief executive, Mark Dickinson, said: “I am delighted we have reached agreement to acquire the outstanding 60% of Ignite, which represents an important milestone in our strategic focus of accelerating the growth of our optimisation services offering. We are pleased with the progress made to date in identifying cross-selling opportunities and look forward to maximising the commercial overlap between the optimisation and assurance services’ markets.” He added: “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. A key area of focus for Inspired continues to be its development of ESG solutions, where we provide assurance on buying strategies for customers and support them to reduce consumption and improve efficiency with the ultimate aim of delivering net zero carbon. Ignite, together with other M&A targets, will expand our service offering to customers.”
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