Inspired Energy buys energy bureau STC for £9m

AIM-listed energy procurement consultant Inspired Energy has completed the acquisition of STC Energy and Carbon Holdings for around £9m to be satisfied in cash and shares in a deal that is expected to be earnings-enhancing next year.

STC is an energy bureau, billing and management service provider to large multi-site organisations.

Inspired said the initial consideration will be satisfied by a cash payment of £5m and the issue of 32.8m new shares to the founders of STC, who will remain with the business.

A potential further deferred consideration of up to £3m, subject to the achievement of certain financial performance criteria, will be satisfied equally in cash and shares for the period ending 30 September 2017.

Inspired said the deal will bring the order book of the enlarged company to £23m and the total customer base to 9,500.

Chief executive Janet Thornton said: “We are delighted to conclude the acquisition of STC, which increases the breadth of our target customer base, enhances our sector specialism including the public sector and larger multi-site clients and expands our service offering for our corporate customers and provides geographical diversification.

“The acquisition fits perfectly with our stated growth strategy and we believe that the complementary nature of the two businesses makes this a hugely exciting opportunity for the group.”

At 1115 GMT, shares were up 4% to 13p.