Dubai’s Esyasoft Offers to Buy UK’s Good Energy Group
The UK’s renewable firm Good Energy Group has announced the acquisition of Empowered Energy Limited even as Dubai-headquartered and International Holding Corporation-backed firm Esyasoft Holdings proposed to takeover Good Energy three days ago.
Esyasoft has acquired a majority stake of 70% in Float, the Dutch IoT firm, last month and this strategic acquisition marked a significant step in Esyasoft’s expansion into the smart water technology solutions market and provides Float with a global platform to showcase its innovative IoT technologies.
In a regulatory filing, Good Energy said that it was evaluating the possible offer, together with its financial and legal advisers, and a further announcement will be made as and when appropriate. “There can be no certainty that an offer will be made, nor as to the terms of any such offer,” Good Energy said.
Good Energy Group has also announced on Monday that it has entered into an agreement to acquire Empower Energy Limited, a commercial focused solar installation company with nationwide installation capabilities, for $9.07 million.
Good Energy expects the acquisition of Empower, coupled with the acquisition of Amelio Enterprises Limited on 4 October 2024, to be substantially earnings enhancing in FY 2025 and beyond. The latest acquisition will be funded from Good Energy’s existing resources whilst retaining a healthy cash balance to support the continued organic growth of the Group.
This is the fifth acquisition Good Energy has made in the past two years, and the fourth in solar installation services. The combination of Empower, the recently-acquired Lincolnshire based Amelio, and Good Energy’s existing solar installation capability across the south, represent a major step towards completing Good Energy’s strategic objectives in the solar installation market.
The latest acquisition has also enabled Good Energy to continue to scale its commercial installation capacity. Empower, alongside Amelio, materially accelerate the Group’s progress in developing its services proposition to become the dominant contributor to profits and will make a material contribution to the Group’s earnings from 2025 onwards.
The initial consideration will be satisfied by a payment of $8.1 million in cash upon completion, and through the allotment of 254,237 new ordinary shares of 5 pence each in Good Energy at a price of 295 pence per share (the Consideration Shares).
The Consideration Shares will be retained by the vendors and will be subject to a twelve-month lock-up period and a further 12-month orderly marketing period. Empower has reported an unaudited revenue of $13.09 million and profit before tax of $2.33 million for the financial year ended 31 August 2024.
Further deferred consideration of $1.3 million is payable in cash in January 2026, subject to certain retention arrangements relating to Ryan McShea, Founder and Managing Director of Empower, and he will join Good Energy as part of the Acquisition to support the growth and integration of Empower into the Group.
Solar Installation Demand Up
Good Energy CEO said that Nigel Pocklington said that businesses were increasingly recognising that the commercial rationale for installing solar is strong, even before one considers the associated benefits of carbon reduction. With energy costs remaining high, businesses and organisations with rooftop real estate can achieve excellent returns on investment.
“Good Energy is already providing high quality, consultative commercial solar installation services to customers in the South, and through Empower joining the Group we are stepping this up further. Offering commercial solar installation backed by 15 years of experience nationwide, Empower accelerates Good Energy’s solar service offering,” he noted.
He also said that as the fourth solar acquisition Good Energy has made in 18 months and the second in only weeks, his company has rapidly scaled its service coverage and capability.
“We will now be focussed on integrating these businesses under the Good Energy brand, leveraging our increased operational scale and vertical integration to provide a cohesive experience for commercial customers looking to cut their energy bills and their carbon through installing solar,” he added.
