Inspired (AIM: INSE), a leading energy procurement consultant to UK and Irish corporates, announces that it has conditionally agreed to acquire Inprova Finance Limited (“Inprova Finance” or “IFL”) for £19.5 million in cash on a debt free cash free basis (the “Acquisition”) from Inprova Group Limited (“Inprova Group”). The Acquisition is expected by the Board to be earnings enhancing in FY 2019 and beyond.
In addition, and in connection with the Acquisition, the Company proposes to raise up to £19.0 million by way of a conditional placing of115,151,516 new Ordinary Shares at 16.5 pence per Ordinary Share. The Company intends to use the net proceeds of the Placing to finance the Consideration and will utilise its existing bank facilities to finance the balance of the Consideration and associated advisory fees relating to the Acquisition.
Acquisition highlights
- IFL provides energy procurement services to its customers analysing usage data to recommend the appropriate options on either flexible procurement arrangements or a fixed price basis
- IFL also provides consultancy services to its customers to enable customers to buy energy efficiently and monitor and reduce their carbon footprint
- IFL is a significant operator within the UK TPI market with access to 19,000 meter points through over 1,000 customers
- IFL has a strong presence in four sectors which it believes have attractive long term growth dynamics being: data centres, social housing, education and construction, which the Board believe with further extend the Group’s sector specialism
- In the year ended 30 June 2018, IFL generated revenues of £7.8 million and EBITDA of £2.9 million
- As at 30 June 2018, IFL’s order book stood at c.£11.6 million
- The Board believes the Acquisition will be enhancing to adjusted earnings per share in FY 2019 and beyond
Commenting on the proposed acquisition, Mark Dickinson, Chief Executive Officer of Inspired, said: “We are delighted to have agreed the acquisition of IFL and its group of energy businesses. This acquisition provides an opportunity to drive further growth from Inspired’s established platform and deliver value creation, both strategically and operationally, in addition to strengthening the Group’s position as a leading TPI in the UK and Ireland. We look forward to working with the team as we continue to accelerate our next phase of growth.”
