German smart meters company Solandeo acquired in rollout drive

In a deal that includes an order for 500,000 smart meters, infrastructure fund Ancala has acquired Solandeo, a fast-growing owner and operator of smart meters in Germany.

The acquisition provides Solandeo with fresh capital and the funding certainty needed to meet rapidly growing demand following the German government’s recent mandate that smart meters be rolled out nationally to commercial and residential customers from 2025 onwards.

Solandeo’s services are typically provided under long-term guaranteed contracts. The business works with leading energy providers in Germany, including 1KOMMA5°, Sonnen and Enpal.

Ancala’s investment will drive the company to scale up to deliver best-in-class metering assets and services to the wider German energy market. This includes the accelerated rollout of Solandeo’s order book and the expansion of existing and the development of new customer relationships.

1KOMMA5° provided support for the takeover and at the same time placed a major order for up to 500,000 smart meters from Solandeo, which is more meters than have been installed in Germany to date.

Following the transaction, the existing management team led by Solandeo founder and managing director, Friedrich Rojahn, together with fellow managing director Nora Rieger, will continue to operate the business.

Have you read:
Germany’s LEW to explore potential of superconducting cables in its grid
Smart grids project between Germany and Czech Republic kicks off

Said Rojahn in a release: “We would like to thank 1KOMMA5° for their close cooperation and support in the process and are delighted to have received the largest order in our company’s history to date. This partnership and the takeover by Ancala Partners give us the opportunity to accelerate our growth and further develop our technologies.”

“In Ancala, we have found an investor and strategic owner to drive our strategy forward and allow us to fully capitalise on our leading position in the German smart metering market. With the Ancala team, we will expand the business, lead the smart meter rollout in Germany and play an increasing role in Germany’s energy transition.”

Tim Power, Partner, Ancala, added: “Solandeo is a unique platform that will continue to take a leading role in the German mandatory metering rollout, with a particular focus on consumers, producers and energy suppliers in the household and industrial markets.

“Solandeo’s existing order book, customer relationships and technology provide us with an exciting opportunity to scale into the growth that is now presenting itself.”

Founded in 2014 and headquartered in Berlin, Solandeo delivers full-scale smart metering solutions.

This includes the procurement, installation, operation, maintenance and ownership of smart metering systems for residential and commercial customers. The business has an existing portfolio of installed and active smart meters and a secured orderbook to instal a significant number of additional meters.

According to Ancala in a release, Solandeo provides producers and suppliers of energy with a cost-effective and reliable smart metering solution. The business uses proprietary IT and software systems to provide customers with the data they need to forecast spend and reduce energy use. It also offers remote control solutions to support the integration of sustainable energy solutions into Germany’s grid.

In a 1KOMMA5°-issued statement, they emphasise the rollout of intelligent measuring systems (iMSys) or smart meters as a key building block for the restructuring of the German energy system; which has been lagging in rollout compared to other European countries.

They state that only with precise and 15-minute data on electricity consumption and feed-in can the potential of flexibility be used to use electricity when it is available and minimise the need for expensive and mostly fossil base load.

Ancala has to date invested almost €1 billion ($1.1 billion) in critical infrastructure companies operating within energy transition and renewables.

On average, Ancala has provided more than 40% of the initial investment capital in follow-on funding to enable its portfolio firms to grow organically and through acquisition.

Financial details of the transaction are undisclosed.