CQ Energy has been sold for $36m as demand for renewables management software grows
CQ Energy has been sold for $36m to sharemarket-listed Energy One which is predicting strong demand as the world shifts towards net zero.
Energy consulting firm CQ Energy has been sold to listed company Energy One for $36m in cash and shares.
The Adelaide-based consulting firm, headed by Reza Evans, Lino Fusco and Ian Tannebring, was founded in 2008 and is focused on renewable energy, batteries and natural gas.
Energy One will pay an initial $26.4m in cash and $6m worth of shares, with a further cash payment to follow.
The listed company’s chief executive, Shaun Ankers, said CQ Energy was the leading provider of operational energy services to the Australian gas an electricity sector.
“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.’’
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Energy One said in a statement to the ASX that it expected CQ to contribute about $7m in revenue in its first full financial year post-consolidation and $4.5m in pre-tax earnings.’’
“The acquisition of CQ Energy builds on our strategy of developing a global 24/7 energy software and services business and follows the acquisition of Belgium-based Egssis (December 2021) and France- based eZ-nergy (June 2020),’’ Mr Ankers said.
“CQ enhances our capability and now provides us with the opportunity to establish a global energy services operation with control rooms in both the northern and southern hemispheres.
The CQ leadership team will remain with the business.
Energy One shares were more than 7 per cent higher at $6.05 in afternoon trade.
The company told the market that demand for its software would grow strongly as economies globally continued to invest in renewables.