Smart Energy Finances: Acquisition to delist SMS from the UK

This week’s Smart Energy Finances looks at acquisition of UK-based Smart Metering Systems (SMS) by a US-based investment firm, a successful financing round for a Spanish start-up developing smart grid technology and Siemens’ acquisition of an AI-based tech company developing solutions for the water sector.

Smart Metering Systems acquisition

Glasgow-headquartered tech company Smart Metering Systems (SMS) has agreed to be acquired by Bidco, a newly formed company owned by KKR-advised funds, in a deal valued at £1.3 billion ($1.6 billion).

KKR said that SMS, under private ownership, will be able to accelerate its growth and transition from a metering provider to a fully integrated, end-to-end energy infrastructure company.

Commenting on the acquisition, Tara Davies, partner and co-head of European Infrastructure at
KKR, said: “Achieving this growth opportunity requires significant capital of a scale, flexibility and certainty which is best facilitated in the private markets.

“KKR is a major investor in UK infrastructure and behind the energy transition, and we will bring our expertise and operational resources to bear in supporting SMS to invest at the level required and successfully scale its business over the long-term.”

Added Tim Mortlock, chief executive officer of SMS, said: “KKR’s offer recognises the strength and resilience of our model and will ensure SMS has the necessary capital to accelerate and unlock its full growth potential.

“The offer price represents a significant premium to the current share price and allows shareholders to realise immediate and attractive value for their shareholding.”

Listed on the AIM market, SMS has a significant presence across eight locations and employs approximately 1,500 people, primarily in the UK.

According to Reuters reportage, if the deal gets shareholders’ approval, SMS will join the growing list of companies leaving London this year, fuelling fears that the capital is rapidly losing its appeal as sluggish trading and low valuations drive firms away from its stock market.

With the acquisition, shares in SMS surged more than 42% to an over two-year high of 969 pence ($12.24) in early trading.

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Smart grid startup seeding

Energiot, a Spanish start-up developing self-powered Internet of Things (IoT) devices for smart grid management, has successfully concluded a seed funding round.

The funding, led by a syndicate of climate technology-focused investors with EIT InnoEnergy together with Axon Partners Group and COREangels Climate underscores a shared commitment to innovation and the transition toward sustainable energy.

Gonzalo Murillo, president and founder of the Spanish startup, commented in a release that the financing round will be used to develop new key pilots with grid operators, scale up their product manufacturing and commercialisation and enable “a gradual growth of our team in order to complement their competencies.”

Energiot’s mission is to digitalise and modernise the electricity grid as renewable energy production increases, coupled with increased electrification and the rise of electric vehicles, which has resulted in grid congestion costing billions annually.

To address these challenges, Energiot aims to optimise grid operation and maintenance through the deployment of IoT devices that are equipped with multiple sensors and contribute to real-time monitoring and predictive maintenance, enhancing the overall efficiency and sustainability of grid assets.

Energiot is a spin-off of the Institute of Microelectronics of Barcelona and has been supported by EIT InnoEnergy since its inception.

The company won the Cleantech Camp programme in 2017 and collaborates with European grid operators to conduct pilots, including with Iberdrola (Spain), EDP (Portugal), and Enercal (France/New Caledonia).

The raised amount from the funding round has not been disclosed.

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Siemens acquires BuntPlanet

Tech giant Siemens has acquired BuntPlanet, a Spanish tech company with software consisting of smart metering solutions, water quality, asset management and integration of hydraulic models and AI for detecting leaks and other anomalies in water networks.

Siemens has had a licensing agreement with BuntPlanet since 2019 to sell their leakage detection software known as SIWA LeakPlus. With this acquisition, BuntPlanet’s entire offering and team will be integrated with Siemens’ application portfolio for water utilities.

BuntPlanet’s core offering, BuntBrain, is a software platform with solutions for leak detection, water quality improvement, end-use water analysis, water loss reduction, asset management, digital twin and water meter management.

The application includes advances in AI, big data and hydraulic simulation to pre-locate leaks and other anomalies, minimising risk of damage to infrastructure and reducing operational and maintenance costs.

According to Siemens, the software’s already-proven integration with Siemens Measurement Intelligence hardware portfolio has demonstrated detection of leaks as small as 0.25 liter per second.

With the acquisition, BuntPlanet is a 100% subsidiary of Siemens Spain and is assigned organisationally to Siemens Digital Industries and part of the Process Automation Business Unit.

Once the integration has fully concluded, Siemens will make BuntPlanet’s offering also available on its open business platform, Siemens Xcelerator.

A purchase price for the acquisition has not been announced.

For the latest in finance and investment news coming from the energy sector, make sure to follow Smart Energy Finances Weekly.

Cheers,
Yusuf Latief
Content Producer
Smart Energy International

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