Origin Energy (ASX:ORG) to Acquire WINconnect for $42.4 Million

original energy (ASX:ORG) has reached an agreement to acquire WINconnect, currently majority-owned by Pacific Equity Partners (PEP), for $42.4 million.

As part of the transaction, Origin also agreed to certain amendments to its Master Services Agreement (MSA) with Intellihub, also majority-owned by PEP, under which Intellihub provides metering services to Origin. Changes to the MSA include an increase in meter volumes. In addition, Intellihub will acquire Origin’s and WINconnect’s in-vehicle power grid meters.

The transactions are cross-conditional with an equity refinancing undertaken simultaneously by Intellihub.

When complete, the acquisition will add 87,000 integrated grid electricity and hot water service customers to Origin with a pipeline of 36,000 additional apartments under contract, Origin said.

“The acquisition of WINconnect is a perfect fit for Origin, aligning with our retail strategy to expand our existing presence in the in-vehicle networking market,” said Frank Calabria, CEO of Origin.

“Since 2018, Origin’s CES business has seen strong growth, with customer accounts increasing by 78%.

“This transaction allows us to significantly expand our customer base, while providing additional growth potential through the sale of a broader suite of behind-the-meter products and services to CES customers.”

The transactions are subject to the approvals of the Foreign Investment Review Board and the New Zealand Overseas Investment Office. Completion is expected before June 30.

Shares in Origin Energy (ASX:ORG) are trading down 1.2% at $5.04.

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