A significant shake-up in the UK’s smart meter industry is underway as private equity group EQT and Singapore’s sovereign wealth fund GIC prepare to acquire Calisen in a deal valued at approximately £4 billion.
The Manchester-based smart meter provider, which currently manages roughly 16 million meters across Britain, is set to change hands from its current owners – BlackRock’s Global Infrastructure Partners, Goldman Sachs, and Abu Dhabi’s Mubadala Investment Company.
This substantial transaction marks a notable evolution for Calisen, which was previously taken private in 2020 for £1.4 billion, merely ten months after its London Stock Exchange debut. The company’s brief public market presence saw its shares consistently trade below their initial 240p offer price, which had valued the business at £1.3 billion.
The deal reflects growing private equity interest in sustainable energy infrastructure, following KKR’s £1.3 billion acquisition of Smart Metering Systems last December. Investors are particularly drawn to the sector’s combination of growth potential and regulatory protections.
Calisen’s financial performance demonstrates steady growth, with sales increasing from £285.8 million in 2022 to £358.2 million in 2023. Despite posting a pre-tax loss of £150.8 million in 2023, the company’s preferred metric of underlying earnings before interest, taxes, depreciation and amortisation rose to £263.4 million, up from £213.3 million.
EQT partner Kunal Koya emphasised the investment’s appeal, citing “significant downside protection and cashflow visibility with tangible upside potential.” The transaction awaits regulatory approval before completion, marking another milestone in the ongoing consolidation of Britain’s smart meter infrastructure sector.
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