Smart Metering Systems plc, a UK-based integrated energy infrastructure company, is set to be acquired by US private equity firm KKR & Co in a deal valued at approximately GBP 1.4 billion (USD 1.76 billion / EUR 1.63 billion). As part of the agreement, KKR will take Smart Metering Systems private at 955 pence per share in cash, according to a statement released on Thursday.
Following the announcement, Smart Metering Systems witnessed a significant surge in its shares, trading 41.03% higher at 959 pence as of 1309 GMT on Thursday in London.
The agreed transaction reflects a total equity valuation of about GBP 1.3 billion, offering a premium of approximately 43.8% to the target company’s six-month volume-weighted average share price as of December 6, 2023.
Established in 1995, Smart Metering Systems specializes in multi-utility infrastructure connections, meter asset management, energy efficiency solutions, and grid-scale battery storage. The company manages around 4.5 million metering and data assets, positioning itself as the UK’s fourth-largest portfolio holder of operational battery energy storage systems (BESS). It also has a substantial pipeline of assets, including 860 MW, of which 240 MW are operational, 370 MW are secured, and an additional 250 MW are under exclusivity. The residential division is actively developing behind-the-meter solar, storage, heat, and electric vehicle services for domestic households.
KKR envisions Smart Metering Systems to play a pivotal role in advancing the UK government’s net-zero ambition by 2050. The private ownership is expected to expedite the company’s growth and transition toward becoming a fully integrated, end-to-end energy infrastructure company, managing carbon reduction assets.
The acquisition has received unanimous approval from the Smart Metering Systems board and is subject to shareholder and regulatory approvals. The parties anticipate completing the transaction in the first quarter of 2024.
