A Fylde coast energy company has snapped up an energy bureau in a deal worth an initial £9m.
Inspired Energy, which has its headquarters at Kirkham, has agreed terms to buy the Kent company via a cash and shares deal.
It takes the form of an initial consideration of £5m in cash and issue of 32.8 million shares to the founders of STC, who will remain with the business.
There will also be a potential further deferred consideration of up to £3m, subject to performance criteria for the period ending 30 September 2017.
Inspired said the deal would increase the group’s procurement corporate order book to £23.0 m and its total customers to around 9,500 (1,400 corporate; 8,100 SME).
It said the deal enhanced Inspired’s service offering within the corporate division through the broad range of bureau,billing and management products and services STC currently provides to its existing customer base.
It would also broaden the Group’s client base through entry into the public sector coupled with regional diversification.
STC is a specialist technology and software enabled energy consultancy.
In the financial year ended 31 March, STC Energy Management Limited delivered revenues of £3.8m, and pre-tax profits of £1.4m.
Inspired entered into a new loan facility with Santander bank for £10m with the ability to loan more for acquisitions, replacing its existing loan scheme.
Janet Thornton, CEO of Inspired Energy said: “Inspired continues to go from strength to strength. 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.”
Simon Clayton, Managing Director of STC said: “When contemplating the sale of STC, we were looking for a partner who we could work alongside to both bring benefits to our customers and continue to develop and grow the business.
“We believe Inspired to be the perfect acquirer for STC and we are looking forward to working with the Inspired team to further improve the services we offer to our clients.”