BY Fraser Tennant
More than four years after it was taken private by a consortium of investors, UK smart metering company Calisen is to be acquired by private equity firm EQT and Singapore's sovereign wealth fund GIC in a transaction valued at $5bn.
The deal will see EQT and GIC buy a majority stake in Calisen from BlackRock, Goldman Sachs and Abu Dhabi state fund Mubadala, which acquired the UK company in 2020, less than a year after its initial public offering.
An independent owner and manager of essential energy infrastructure assets, Calisen is a provider of smart meters, electric vehicle charging, solar and battery, and heat pump installation, meter reading, maintenance and ancillary services – the purpose of which is to accelerate the development of a cleaner, more efficient and sustainable energy sector.
The rollout of smart meters is expected to continue to increase due to a supportive regulatory framework toward net zero as well as demand from energy suppliers and customers to support energy efficiency and the balancing of the electricity grid. With an installed base of approximately 16 million meters, Calisen is well-positioned to capitalise on market trends underpinned by the continued energy transition.
“Through its integrated business model, Calisen owns, installs, reads and maintains metres throughout their useful life,” said Ang Eng Seng, chief investment officer of infrastructure at GIC. “With its steady cash flows and long-term contracts, we are confident in Calisen’s growth potential as a core infrastructure investment.”
EQT and GIC will support Calisen’s long-term prospects by driving the continued rollout of its energy-transition-related assets, including smart meters, heat pumps and renewable energy systems, both in the UK and abroad. It will also explore expanding into adjacent sectors, such as smart water metering.
“Calisen plays an active role in the decarbonisation of the UK economy, a position we intend to strengthen with the support of all of our shareholders,” said Sean Latus, chief executive of Calisen. “EQT and GIC’s experience in the energy sector will be invaluable as we look to leverage our scale and customer relationships to significantly expand our smart meter portfolio and replicate our success in adjacent areas.”
The transaction is subject to the satisfaction of certain conditions, including regulatory approvals.
“Calisen’s critical role in the UK’s energy transition aligns perfectly with EQT’s commitment to investing in essential infrastructure that contributes to a more sustainable future,” said Kunal Koya, a partner in EQT’s active core infrastructure advisory team. “We look forward to partnering with management and GIC to embark on Calisen’s next phase of growth.”
News: EQT and GIC to acquire majority stake in Calisen from consortium of investors