OVO Energy, the U.K. leading independent energy supplier, has agreed to acquire SSE Energy Services’ household energy and related services business for £500 million ($624 million).
The transaction comprises £400 million ($499 million) in cash and £100 million ($124 million) in loan notes.
“This transaction marks a significant moment for the energy industry,” said Stephen Fitzpatrick, CEO and founder of OVO. “Advances in technology, the falling cost of renewable energy and battery storage, the explosion of data and the urgent need to decarbonize are completely transforming the global energy system. For the past three years OVO has been investing heavily in scalable operating platforms, smart data capabilities and connected home services, ensuring we're well positioned to grow and take advantage of new opportunities in a changing market.”
Since it was founded in 2009, OVO has grown to serve 1.5 million customers. In the past year, the company increased its customer base in the United Kingdom by 50 percent and launched new operations in France and Spain. It plans to expand to Australia, Germany and Italy next year.
The deal is subject to regulatory approvals, expected to take a number of months. Until then, both companies will continue to operate independently as separate entities and serve their respective customers.
The companies serve an aggregate of almost 5 million households across the United Kingdom.
