Inspired Energy plc (LON:INSE) is launching a £9mln equity funding to support the acquisition of Irish corporate energy procurement consultant.
It is acquiring a 90% equity holding in Cork-based Horizon Energy Group in a deal worth €9mln, with an option to pick up the other 10% for an additional €1mln.
Horizon acts on behalf of its corporate clients to procure better energy contracts. Inspired expects the deal to be earnings enhancing in the 2017 financial year, and it is said to be ‘significantly’ enhancing for the following year.
Janet Thornton, Inspired Energy chief executive, described Ireland’s energy procurement sector as “relatively underdeveloped” compared to the UK market.
As such, Thornton said the Horizon deal provides Inspired a “significant opportunity” to increase its presence and leverage the enlarged group’s experience of growth.
"Inspired continues to look to deliver on its growth strategy and Horizon provides an opportunity to drive growth from Inspired's platform as it is an established business in a relatively untapped market,” she said in a statement.
“It will bring high earnings visibility, supported by a strong procurement corporate order book, and Horizon's sales team will benefit from the cross-selling opportunities with access to Inspired's broader capabilities, ultimately benefitting clients."
Inspired is planning to raise £9mln, issuing 62mln new shares at a price of 14.5p per share (a small 2.6% discount to Wednesday’s closing price).
The London-listed company has also entered into a new facility with Santander to support the enlarged group, providing £29.6mln and €7mln.