Energy One to acquire Adelaide’s CQ Energy

wind turbines against golden sky with wild grass in the foreground (aula energy)
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ASX-listed software and services business Energy One has agreed to acquire Adelaide-based CQ Energy, in a deal that will see it become the largest provider of 24/7 operational energy services in Australia, according to the Australian Financial Review.

Energy One, which services wholesale electricity markets players in Europe and Australia, will pay $36 million for the acquisition—a figure that represents eight times the expected EBITDA (earnings before interest, taxes, depreciation, and amortisation).

The deal will bolster EnergyOne’s annual revenue and earnings by $7 million and $4.5 million a year respectively, and was structured to be earnings accretive on completion, the Australian Financial Review reported.

Energy One chief executive Shaun Ankers said CQ Energy was the leading provider of operational energy services to the Australian gas an electricity sector.

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“They provide similar 24/7 operational services as our European businesses eZ-nergy and Egssis, as well as running a sophisticated risk transfer/broking business,’’ Mr Ankers said.

“This on-strategy acquisition is our largest to date and will increase group EBITDA by about 50 per cent on a proforma basis.’’

CQ Energy was founded in 2008 and offers bidding and dispatch and control room services to wind farms, solar farms, industrial gas customers and other clients, as well as consulting and broking.

The acquisition is set to make Energy One the biggest provider of operational energy services in Australia and is part of its strategy to be at the forefront of the burgeoning renewable energy sector.

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