You are using an older browser version. Please use a supported version for the best MSN experience.

Gentrack seals $79m UK deal

NZ Newswire logoNZ Newswire 28/03/2017 Jonathan Underhill

Gentrack Group has agreed to acquire the UK's Junifer Systems for about $79 million, extending its reach in customer information and billing systems for utilities such as energy retailers.

The acquisition will be funded through a mix of shares, cash and debt facilities, the Auckland-based utilities software developer said on Wednesday.

Buying Junifer will make Gentrack the UK's largest provider of customer information and billing system provider for energy retailers, with 32 customers in a market of about 50 energy retailers, it said.

"The acquisition of Junifer delivers us the full range of product functionality from SaaS billing for new entrant energy and water retailers, to cloud hosted and on-premise solutions for the largest utility players," said chief executive Ian Black.

To finance the deal, Gentrack will make a placement of shares at $3.72 to HgCapital, raising $35.5m. It will also make a placement to Junifer's vendors at $3.65, raising $5.3m and draw down $30.2m, it said. The balance would use $8m of cash at hand.

Gentrack shares last traded at $3.70 and have gained 49 per cent in the past 12 months.

The Junifer vendors have agreed to a 24-month voluntary escrow arrangement preventing them from trading in the stock before April 1, 2019.

After the capital raising, HgCapital will own about 11.4 per cent of Gentrack. HgCapital, which Gentrack described as a leading global investor in application software businesses, will also gain a seat on Gentrack's board, with partner Nic Humphries becoming a director.

Gentrack also said it has obtained a revolving debt facility of $42.5m with ASB Bank.

Last month Gentrack said it expected first-half sales to rise about 20 per cent as the company benefits from new projects coming on stream.

The utilities software developer told shareholders at their annual meeting that first-half sales would be about a fifth higher than the $18.5m it reported in 2016, "with multiple projects going live" and offsetting currency headwinds.

image beaconimage beaconimage beacon