Sureserve Group PLC (AIM:SUR) said it acquired CorEnergy Limited, which delivers sustainable energy solutions for public and private sector organisations, for up to £7.5mln in cash and shares.
The AIM-listed compliance and energy services group will pay an initial £5.9mln on completion, including £2.9mln in cash and 3,281,879 new ordinary shares at an effective price of 89.4p each.
Established in 2014, CorEnergy helps public and private sector organisations reduce energy, improve efficiency and save carbon via a range of energy efficient products, including LED lighting/controls, solar panels, electric vehicle charging, battery storage and renewable heating solutions.
It mostly works with schools and other educational establishments, healthcare organisations, government departments, as well as manufacturing and distribution companies.
Sureserve could pay a further deferred consideration of up to £1.6mln, split equally between cash and shares, depending on CorEnergy's full year results for the current calendar year 2021, when it is expected to achieve revenues in excess of £6m and underlying earnings (EBITA) of roughly £1mln.
CorEnergy’s executive directors, Tom Griffin and Richard Budzynski, will remain with the business following the acquisition.
Sureserve chief executive Peter Smith said the acquisition “meets with our strategic objective of building Sureserve's capabilities in the energy services, delivering vital services to local and central governments, energy companies, and homeowners.
“CorEnergy supplements our services and will be immediately earnings enhancing to the group.”