Bid Energy (ASX:BID) to raise $15M for Optima Energy Management buy

• Bid Energy (BID) is set to raise $15 million to fund the acquisition of U.K.-based energy software company, Optima Energy Management
• Optima manages energy data for 51 customers who are responsible for over 196,400 meters across the U.K.
• Bid will pay Optima £5.4 million (roughly A$9.75 million) along with a deferred cash payment if certain milestones are achieved within a year
• Bid considers the acquisition to be a strategic move in expanding into the U.K. and European markets
• The $15 million will be raised through a fully underwritten institutional placement that will issue 14 million shares at $1.07 each
• The issue price represents a 7.3 per cent discount to the five-day volume-weighted average price
• Bid will remain in a trading halt until tomorrow and shares last traded at $1.16 on Wednesday, December 2

Bid Energy (BID) is set to raise $15 million to fund the acquisition of U.K.-based Optima Energy Management.

Bid will acquire the energy management software company for £5.4 million (roughly A$9.75 million).

Of this, £3.2 million (roughly A$5.78 million) will be paid in cash upfront. The remaining acquisition price will come in the form of 3.384 million shares which will be issued to Optima vendors at an issue price of A$1.16 per share, representing A$3.9 million at the time of writing.

Additionally, Bid will make a deferred cash payment if it achieves certain milestones regarding revenue and costs within a year of the acquisition being completed.

Optima’s software platform provides bill validation, budgets and accruals, and tenant and self-billing, through a self-service model. Optima manages energy data for 51 customers who are responsible for over 196,400 meters under management across the U.K.

The acquisition builds on Bid’s already-strong long term relationship with Optima, having provided data collection services to support a part of their core business.

“Bid is very excited to take the next step on its journey to becoming a major global player in the utility bill management sector. The acquisition of Optima will accelerate our growth and penetration in the U.K. market, and offers the potential for expansion in both the U.K. and European markets,” Bid Managing Director Guy Maine said.

“Bid’s global client base gives the combined companies the opportunity to deliver a market leading platform for Utility Bill Management, Procurement, Carbon & Sustainability, and Tenant OnCharging. I look forward to working with the Bid team as we move into 2021 and beyond,” Optima Managing Director Steven Wright said.

The $15 million will be raised through a fully underwritten institutional placement. A total of 14 million shares will be issued at $1.07 each. The issue price represents a 7.3 per cent discount to the five-day volume-weighted average price (VWAP) and an 8.1 per cent discount to the 10-day VWAP.

Bid will remain in a trading halt until tomorrow and shares last traded at $1.16 on Wednesday, December 2.