UK utility OVO Energy will acquire SSE Energy services for £500 million, comprising £400 million in cash and £100 million in loan notes.
The acquisition will help OVO Energy to expand its clean and affordable energy business to UK consumers.
The deal will expand customers of OVO Energy to 5 million and will help the utility to help consumers to decarbonise their households in a cost-effective manner.
SSE Energy Services serves 3.5 million customers and is currently ranked first in the Citizens Advice domestic energy supplier customer service league table and is uSwitch Large Supplier of the Year 2019 with the highest customer satisfaction score out of the big six suppliers.
OVO Energy is using an investment made by Mitsubishi Corporation to expand its capabilities to become a zero-carbon energy firm.
The funding has enabled OVO Energy to launch the world’s first domestic vehicle-to-grid charger.
Stephen Fitzpatrick, CEO of OVO Energy, said: “This transaction marks a significant moment for the energy industry. Advances in technology, the falling cost of renewable energy and battery storage, the explosion of data and the urgent need to decarbonise are completely transforming the global energy system.
“For the past three years, OVO has been investing heavily in scalable operating platforms, smart data capabilities and connected home services, ensuring we’re well-positioned to grow and take advantage of new opportunities in a changing market.”
In the last year, OVO has increased its UK customer base by 50% and opening operations in France and Spain. OVO has plans to open in Australia, Germany and Italy next year.