Utiligroup completes sale to Energy Services Group

NorthEdge Capital has sold Chorley-based energy technology provider Utiligroup to Energy Services Group (ESG), a leading provider of technology solutions to the retail energy and utility industries, for an undisclosed sum.

Utiligroup will join ESG, an Accel-KKR portfolio company, to support the company’s global growth strategy, providing a footprint in the European market. ESG has recently expanded its presence beyond the US by entering Japan and Canada and is targeting further expansion into other geographies.

Funding was also provided to aid the development of new smart meter connectivity software, in advance of the launch of the smart meters to consumers from Summer 2017. The original three directors, Matthew Hirst (CEO), Andrew Green (CTO) and Steve Gosling (CFO), that NorthEdge backed were strengthened by the recruitment of a further five main board directors. NorthEdge also introduced Ian Kelly to the business as non-executive chairman, who had been backed previously as CEO on two other successful investments.

The deal is the fifth exit from NorthEdge’s maiden £225m Fund I and has generated a gross 5.7x return on investment. NorthEdge is reinvesting alongside Accel-KKR as part of the deal given the exciting growth opportunities that remain in the sector.

Jon Pickering, head of Manchester at NorthEdge Capital, added: “The management team has performed exceptionally well during a time of significant change in the energy market. Consumer buying habits and changing regulations have seen new players enter the market, taking share away from the big six energy suppliers. The team have also capitalised on the opportunity to develop and then successfully launch smart grid software alongside extensive data analytics for existing and new customers. This has provided a number of further growth opportunities for Utiligroup in the UK, and the sale to Accel-KKR means the company is now in a strong position to expand internationally.”