Smart Metering Systems (SMS) has acquired Utility Partnership Limited (UPL), a UK-based manager of electricity meters and provider of electricity connections, design, meter installation, data management and energy management services, for £14m.
The consideration will be settled through a payment of approximately £ 9.7m in cash, while the remaining £ 4.3m will be satisfied by the issue of 1,246,277 ordinary shares of 1p each.
The transaction is in line with SMS’strategic vision to become the leading independent supplier of smart metering solutions to suppliers in the utility sector.
UPL will now join the SMS Group as a new electricity division, which will operate divisionally from Glasgow and Cardiff, under the leadership of Rhys Wynne, who co-founded UPL in 1996.
Smart Metering Systems chief executive officer Alan Foy said the acquisition positions the enlarged company as a dual gas and electricity service provider and establishes a base from which it can enhance its existing respective client relationships.
"It will ensure that SMS is well positioned with suppliers of domestic gas and electricity for the future UK domestic smart metering roll out," Foy added.
Utility Partnership has posted revenue of £11.1m and a gross profit of £3.7m in the year ended 31 July 2013.
In a seperate development, SMS has also appointed Willie MacDiarmid to replace Nigel Christie as a non-executive director of the company with effect from 14 April 2014.
In addition, the company reports that Miriam Greenwood is taking over the Chair of the Company’s Audit Committee.