EQT, a private equity group, along with Singapore’s sovereign wealth fund GIC, are set to purchase a majority stake in Calisen, a UK-based smart meter provider. This deal values Calisen at approximately £4 billion, highlighting the growing interest from investment firms in this sector.
The stake will be acquired from Global Infrastructure Partners, which is part of BlackRock, along with Goldman Sachs and Abu Dhabi’s Mubadala Investment Company. Based in Manchester, Calisen has established itself as one of the country’s largest smart meter operators. Additionally, the company is involved in installing electric vehicle charging units, solar technologies, and heat pumps.
This acquisition aligns with a trend where private equity firms are increasingly investing in companies focused on sustainable energy solutions and helping consumers manage their energy consumption. Recently, GIC has also teamed up with TPG, a US private equity firm, to secure a nearly €7 billion deal for the German metering company Techem.
In the same vein, KKR acquired Smart Metering Systems in the UK for £1.4 billion last December, further demonstrating the rising interest in this sector.
Calisen reported a pre-tax loss of £51.6 million for 2023, a significant drop from its £138.2 million profit the previous year, although revenue increased to £358.2 million. The company manages around 12 million smart meters in the UK, nearly half of the total in the country.
Back in 2020, Calisen was taken private for £1.43 billion by a consortium led by BlackRock, following a brief stint as a publicly traded company. The acquisition occurred less than a year after Calisen joined the FTSE 250, marking one of London’s largest initial public offerings that year.
At the time of taking Calisen private, KKR held the majority of its shares after acquiring the company in 2016 for about £1 billion. Kunal Koya from EQT noted that the energy transition requires significant investment and benefits from long-term ownership that can support growth over time.
Calisen’s CEO, Sean Latus, expressed confidence that EQT and GIC’s expertise in the energy sector would be crucial as the company aims to expand its smart meter portfolio and explore adjacent opportunities.