Payment of deferred consideration pursuant to the acquisition of STC Energy and Carbon Holdings Limited
On 17 November 2015 Inspired Energy announced the acquisition of 100% of the issued share capital of STC Energy and Carbon Holdings Limited (“STC”), a market leading energy bureau, billing and management service provider to large multi-site organisations. The consideration payable on completion which amounted to £9.0 million was satisfied in cash and shares.
In addition, there was provision for the payment of an earn-out of up to £3.0 million, payable in the two tranches, to be satisfied 50% in cash and 50% by the issue of new ordinary shares of 0.125p each in the Group (the “Terms”).
The Group settled an initial tranche of deferred consideration of £1.5 million in May 2016 and is due to pay a further £1.3 million in deferred consideration under the Terms.
The Group has entered into a deed of variation of the Terms with the vendors of STC (the “Revised Terms”). Based on the Revised Terms, the Group will now satisfy all of the final £1.3 million deferred consideration payable in cash and the Group will therefore not be required to issue any additional new ordinary shares.