Energy One surged 18% after it advised it would acquire Belgian company EGSSIS NV, a significant provider of energy scheduling and nomination software and associated services to European gas and power market participants.
Egssis will join eZ-nergy and Contigo as a major software vendor in the European Energy Trading and Risk Management markets. In particular, eZ and Egssis are highly complementary, offering modern SaaS products and services to customers. Coupled with Contigo’s contracts and derivatives trading software, the transaction enhances EOL’s pan-European trading capability in both physical and financial markets.
Energy One purchased Egssis for €4,250,000, to be paid in cash and equity, in instalments over an 18-month period. The acquisition will be funded from the existing cash reserves and debt facilities. The later cash instalments will be funded internally from cash flow.
In its first full financial year post-consolidation (FY23) Energy One expects Egssis to contribute approximately A$5.9 million revenue and A$1 million EBITDA with further integration benefits to arise over a two-year period as the businesses are merged.
Energy One advised that as well as being complementary, the Egssis acquisition offers the company strategic opportunities including an even broader European reach as eZ, Egssis and Contigo now serve markets across 17 European countries. It will also enhance their ability to win customers as the increased capability from merging eZ and Egssis will provide strong alternatives to the remaining (incumbent) vendor those customers using in-house solutions. Egssis also enhances EOL’s capability to establish global 24/7 operations services and potentially establish an Australian services business to complement Europe.
Group CEO, Shaun Ankers noted, “Egssis is a great business, providing high quality software and services to the European energy trading market and we are very excited to welcome them into the family. Our European businesses comprise a strong and highly-capable team for pan-European energy trading solutions, assisting customers operating in Europe’s fast paced 24/7 wholesale energy markets.”