What has OVO Energy achieved

OVO Energy acquires SSE Energy Services in a groundbreaking transaction

UK's leading independent energy company, OVO Energy, has agreed to acquire SSE's household energy business and related services for £ 500 million. This transaction, comprising £ 400 million in cash and £ 100 million in a promissory note, is a momentous moment for the energy industry. Together, the companies serve nearly 5 million households across the UK.

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Stephen Fitzpatrick, CEO and Founder of OVO (Photo: Business Wire)

With the takeover, OVO is getting closer to its goal of providing everyone with clean and affordable energy. Combining a business on the scale of SSE with OVO's technological capabilities means millions more customers can use the latest technology to reduce their household's carbon footprint while keeping their costs down while continuing to receive excellent service.

Stephen Fitzpatrick, CEO and Founder of OVO said:

This transaction is a significant moment for the energy industry. Technological progress, falling costs for renewable energies and battery storage, the explosive increase in data and the urgently needed decarbonization are leading to a complete transformation of the global energy system.

Over the past three years, OVO has invested heavily in scalable operating platforms, intelligent data capabilities and services for the connected home, ensuring that we are well positioned to grow and take advantage of new opportunities in a changing market.

SSE and OVO complement each other perfectly. The companies share the values ​​for sustainability and customer service. You have built an excellent team and I am looking forward to working with you. "

Alistair Phillips-Davies, CEO of SSE stated:

“We have long believed that a dedicated, focused and independent utility company can best serve customers, employees and other stakeholders - and this is an excellent opportunity to achieve that goal. OVO shares our consistent focus on customer service and has a bold vision of reshaping the future of the industry using technology. I am confident that this will be the optimal result for SSE Energy Services' business. "

CEO Stephen Fitzpatrick founded OVO in 2009 to transform the energy market with cheaper, greener and simpler energy. With a focus on customer service and the development of new, clean energy technologies, the company has since grown to become the UK's largest independent energy company, now serving 1.5 million customers. Over the past year, OVO has grown its UK customer base by 50% and started operations in France and Spain. OVO plans to expand to Australia, Germany and Italy next year.

Earlier this year, OVO secured a significant strategic investment from Mitsubishi Corporation. This enabled OVO to invest even further in the technology needed to transition to a carbon-free future. For example, OVO launched the world's first domestic vehicle-to-grid charger, developed the software to connect millions of electric vehicles to the power grid, and invested in dynamic battery storage systems that households can use to feed energy into the grid.

The transaction still requires regulatory approval, which is expected to take a few months. For the time being, both companies will continue to operate as separate companies, each supplying their own customers.

Should this transaction materialize, the leadership teams of both companies will work together to carefully plan the integration of SSE into the OVO family and its systems and platforms. OVO has negotiated rights to use the licensed umbrella brand of SSE for a transitional period and acquired regional brands as part of this transaction, which the company would like to keep in the near future.

You can find a link to the image database HERE and a link to the OVO blog about this message HERE.

Notes for editors

● OVO Energy and SSE are widely recognized for their award-winning customer service.

○ OVO was named for the fourth time in five years uSwitch Supplier of the Year 2019 excellent. OVO Energy also took first place in a total of six categories, including highest customer satisfaction and the best online service.

○ SSE occupied in the Customer service ranking of domestic energy providers by Citizens Advice (table here)currently ranked first and scored with the designation as USwitch major provider of the year 2019 The best result for customer satisfaction among six major providers.

● SSE Energy Services supplies 3.5 million household customers in Great Britain.

● OVO Energy was the first ancestral energy supplier to work for a Fuel mix without coal or nuclear power cared. It guarantees at least 33% renewable energy at standard prices. The OVO Energy environmental tariff includes electricity 100% from renewable energies. OVO has on behalf of customers 728,000 trees planted.

● SSE has set itself basic goals for 2030, which with the global sustainability goals of the UN are connected. The company has long been Pioneer in the field of renewables and was the first to bring hydropower to Scotland over 70 years ago.

● OVO has proven itself in developing intelligent technologies. Kaluza is a smart grid technology company leading the digital transformation of the power system. It offers software and hardware solutions as well as services for installation at home. It cooperates with the company Indra, which specializes in electric vehicles, in the development and manufacture of its V2G charger and his intelligent charger for electric vehicles.

● OVO Energy received the award World's Best Energy Brand at CHARGE 2016.

Barclays Capital and Greentech Capital Advisors supervised OVO as financial advisor.

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