London, U.K. — (METERING.COM) — October 8, 2010 – British Gas has acquired a 15.96 percent stake in the UK-based home energy management services company AlertMe.
The cost was £5.7 million in cash, and following the transaction, British Gas will also hold a seat on AlertMe’s Board.
As part of this investment British Gas has signed a commercial agreement, potentially worth over £20 million (dependent upon technology delivery), to deploy AlertMe products and services to its customers in the U.K., helping them to save energy and providing smarter ways to take control of their energy use.
In a statement British Gas says the transaction will also enable it to further expand its position in smart technology and enhance its service offering. British Gas customers will gain access to new products such as AlertMe’s home area network (HAN) platform, which allows users to manage and control a wide range of home activities and appliances over the internet or smart phone.
Further, this investment is another important step towards facilitating the “home of the future”, in which smart technology will help customers take control of their energy usage. The company is also leading the rollout of smart meters in the country, with over 160,000 smart meters installed to date.
“We want to make energy saving as easy as possible for our customers. This is why we continue to offer new, smarter ways to help customers take control of their energy usage,” said Phil Bentley, managing director at British Gas. “AlertMe’s innovative product portfolio is a great addition to British Gas’ current service offering, and will provide our customers with a new range of affordable, easy to use tools to reduce their energy consumption and cut their fuel bills.”
Mary Turner, AlertMe CEO, added: “We are delighted to welcome British Gas as a strategic investor and key commercial partner. This is a massive opportunity to contribute towards transforming the energy sector by providing easy to use, personalised services to customers, enabling them to manage their energy use, save money and reduce carbon emissions.”
With the British Gas investment AlertMe has closed its second round funding raising a total of £15 million, including additional funding from existing investors Good Energies, Index Ventures, SET Venture Partners and VantagePoint Venture Partners. These funds will be used to expand AlertMe’s partner and channel program in the U.K., Europe and the U.S., and to further extend its platform, services, analytics and ecommerce proposition.