New Zealand-based electricity generation company Mercury has announced the sale of Metrix, its smart-metering business, to intelliHUB Group for an amount of $270m.
Mercury says the sale would result in benefits of capital and resources, apart from simplifying the company
Metrix is one of the major smart metering solution providers which manage more than 460,000 meters at household and commercial connection points. It has been operating and branded separately from Mercury’s core generation and retail activities.
IntelliHUB CEO Adrian Clark said: “Metrix’s large installed meter base, deep customer relationships and innovation platform, make this a natural acquisition for intelliHUB. It is also clearly aligned to our strategy of focusing on growth and innovation in smart metering services.”
As per the purchase agreement, Mercury’s retail business will continue as a key partner of Metrix and is expected to benefit from the metering services that Metrix will provide under its new ownership.
The transaction is expected to be completed by 1 March 2019. Mercury will utilize the proceeds from the sale to repay its net debt in the first instance.
Metrix’s chief executive Matt Olde will remain as a Mercury executive with an initial focus of ensuring a successful Metrix transition to intelliHUB.
Headquartered in Newmarket, Auckland, Metrix employs around 90 people. Its core business is to offer Advanced Metering Infrastructure and services to New Zealand’s electricity retailers.
Mercury chief executive Fraser Whineray said: “The sale price achieved is recognition of the expertise, scale and opportunity Metrix represents. While Mercury had its own strategy for Metrix, negotiations with intelliHUB Group have presented an opportunity that is timely for both parties.
“IntelliHUB is a natural owner for the business given its experience and growth in Australia, and its expansion into New Zealand, partnering with Trustpower to roll-out smart meters across its customer base.”
For this transaction, Flagstaff Partners has served as financial advisor to Mercury, while Chapman Tripp served as legal advisor.