Intellihub chief executive Wes Ballantine called the deal “transformational” for the company as it sought to further leverage its 45% share of smart meter installations in Australia and expand into related services behind the meter such as solar management on the grid roof. .
The company had around 1.3 million meters in Australia and New Zealand, with an order book of at least 1.7 million, and had won major contracts with Aurora Energy and ActewAGL in the past 12 months. and secured increased commitments from major energy retailers.
“We were delighted with the arrival of Brookfield … obviously for us, such a quality partner to enter the company, they have ambitions displayed around the energy sector and more broadly, in the Australian context. and New Zealand ”Mr. Ballantine said The Australian Financial Review.
“We are delighted that they believe in the journey we are on and that they want to support it to continue on this path. I think it gave them a lot of confidence that PEP wants to stay at 50 percent.
“This is a tremendous result for our company, and we are delighted to take another step forward with these parts. “
While the exact deal value has not been disclosed, the deal would give Intellihub an enterprise value of around $ 3 billion and net worth of $ 2 billion, signaling that Brookfield is investing around $ 1 billion. dollars for its 50% stake.
The auction process around Intellihub’s stake has been going on for six months, sparked by a discussion of future ownership due to the momentum created by the company, which has paved the way for future investments, Mr. Ballantine.
“It sparked a natural conversation as to who sort of were the best owners and holders of stock… for the next step in the company’s future,” he said.
Landis + Gyr, a hardware producer, had been happy to support Intellihub at the start of the business which started in 2018 and it now made sense to bring in a lead investor at the 50:50 level alongside PEP.
In the separate but related transaction, Origin will pay a net amount of $ 42.4 million to acquire WINconnect. after taking into account certain modifications to its agreement with Intellihub for the provision of metering services. Intellihub also acquires the onboard electricity network meters from Origin and WINconnect.
Origin CEO Frank Calabria described WINconnect as an “ideal solution”, complementing the company’s strategy to expand into on-board networks.
“This transaction allows us to significantly increase our customer base, while providing further upside potential through the sale of a wider range of behind-the-counter products and services at CES. [community energy services] customers, ”he said.
Origin’s community energy service customers will increase to 367,000 upon completion, which is expected in mid-June 2022.
The deals come just weeks after Intellihub secured a five-year, $ 1.45 billion green loan to support its next phase of growth. The facility was organized by ANZ, BNP, Crédit Agricole, MUFG, NAB, SMBC and Société Générale, with ANZ acting as sole coordinator.
“This gives us a runway of two or three years of fresh capital to deploy additional meters,” Mr. Ballantine said.