Gridspertise is dedicated to advancing the digital transformation of power grids by providing the required hardware, software, and services to electricity infrastructure operators
The building of the headquarter of Enel in Rome, Italy. (Credit: Sergio D’Afflitto/Wikipedia)
Italian utility Enel, through its unit Enel Grids, has agreed to divest a 50% stake in its wholly-owned subsidiary Gridspertise to private equity fund CVC Capital Partners Fund VIII (CVC).
Enel Grids is dedicated to the management of the electricity distribution service worldwide and delivers electricity to more than 75 million end users.
Gridspertise is dedicated to advancing the digital transformation of power grids by providing the required hardware, software, and services to electricity infrastructure operators.
Under the terms of the agreement, CVC will pay a total consideration of around €300m, which values Gridspertise at a total enterprise value of €625m.
In addition, the agreement includes potential deferred payments, which could bring the total enterprise value of Gridspertise up to €1bn.
The transaction is expected to be completed by the end of 2022, subject to certain closing conditions customary for this type of transaction.
The conditions include the achievement of various administrative authorizations needed for the transfer to CVC of the 50% quota in Gridspertise.
Upon closing of the transaction, Enel and CVC will jointly operate and control the company.
Enel CEO and general manager Francesco Starace said: “According to this Plan, it is expected that about 584 billion euros of investment will be needed by 2030.
In the US, under the Bipartisan Infrastructure Law, dedicated government funding of about $10bn, specifically targeting the acceleration of grid resilience and innovation partnership programmes, is forecasted between 2022 and 2026.
“Enel has the largest experience in this field and it is now all concentrated in Gridspertise.
“With this partnership, we are joining forces with CVC to support the growth of Gridspertise and further enable the achievement of its mission, underscoring the importance of Distribution System Operators and the digital transformation of electricity infrastructure in the energy transition process.”
Enel said that the transaction is in line with its current Strategic Plan and will generate a positive impact on the EBITDA of around €500m.
Established in 2021, Gridspertise leverages Enel’s expertise in developing, testing, and scaling up the best technologies to operate smart grids.
The company offers Distribution Grid Operators access to advanced sustainable solutions for the digital transformation of electricity distribution networks.
The stewardship model will attract investments from third parties, and may help the company to monetise its expertise and offer services to partners, said Enel.