Accel-KKR's ESG buys Utiligroup from NorthEdge

The transaction is thought to value the company at around £100m.This deal is the fifth exit for NorthEdge from its first fund, which closed on £220m in April 2013, realising a 5.7x gross return on investment. NorthEdge will also reinvest in the deal alongside Accel-KKR.

ESG is a transaction and billing management and pricing business. It previously acquired Texas-based Latitude Technologies in November 2016 as part of its global energy strategy.

Utiligroup has developed software to accompany the rollout of smart meters, which the UK government aims to have installed in all homes by 2020. The Financial Times reports that Barclays analysts believe further government intervention in the UK energy market is "almost inevitable" ahead of UK business secretary Greg Clark's questioning by a parliamentary committee this week.

Previous funding
In June 2014, NorthEdge backed an MBO of Utiligroup from BGlobal, initially investing £11.1m of the £16.1m deal for a majority stake in the company.

Company
Established in 1997 and based in Lancashire, Utiligroup provides data management software to the energy sector. It counts 46 active UK energy suppliers on its books, including four of the largest six providers. Utiligroup employs 200 people and recorded a turnover of £12.5m with an EBITDA of £4.5m for the 2016 financial year.

People
NorthEdge Capital – Jon Pickering (head of Manchester).
Energy Services Group – Phil Galati (CEO).
Utiligroup – Matthew Hirst (CEO).

Advisers
Equity – Results International (financial due diligence); Brodies (legal); Kirkland & Ellis (legal).
Vendor – KPMG, Jonathan Boyers, Rick Stark (corporate finance); DWF, Jonathan Robinson and Vicky Ross (legal); EY, Neil Hutt, Stuart Thwaites, Steven Kingham (financial due diligence).
Company – KPMG, Alex Hartley, Steven Leah (corporate finance); Fieldfisher, Matt Fleetwood, Joanne White (legal); PwC, Dan Harris, Catherine Kay (tax).

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• Topics
• Exits
• UK / Ireland
• Technology
• Portfolio management
• United Kingdom
• Secondary buyout
• KKR
• NorthEdge Capital
• Build-up