Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Major capital injection and revenue deal for EIL


For immediate use
14 August 2003

Major capital injection and revenue deal for EIL

Technology company Energy Intellect Ltd (EIL) has entered into a service alliance agreement with NGC that will significantly increase revenue over the next 10 years.

Under the agreement NGC will be able to offer EIL’s world leading energy information platform to energy retailers and large end-users in New Zealand and Australia.

NGC will also take a 25.05 percent equity stake in EIL and purchase the part of EIL’s NEMMCO-accredited business that provides energy data services to AGL subsidiary Agility. The combination of these transactions will inject substantial new capital into the company.

EIL’s technology enables utilities and energy service companies to efficiently manage complex energy consumption information from the customer site through to market settlement authorities.

EIL’s unique energy information platform also provides commercial and industrial end-users with verified consumption information which is used for energy management and other enhanced energy market services.

EIL chief executive Dean Gowans said the alliance with NGC presented EIL with substantial growth opportunities.

“We expect NGC’s use of the platform will result in EIL technology being used in more than 40 percent of Australasia’s commercial and industrial electricity advanced meter business by June 2005,” he said.

The transactions represented a significant milestone for the company and would position it well for expansion into new markets.

“The combination of a $7.85 million cash injection from the transactions and the 10-year service alliance agreement provides EIL with considerable confidence for the future,” Mr Gowans said.

“While our immediate focus will be on servicing our existing customers in
Australasia, NGC’s support means that in time we can more aggressively pursue opportunities in deregulating electricity markets throughout the world.”

New Zealand technology companies like EIL were poised to take advantage of the trend towards international IT offshore outsourcing, with factors like the exchange rate, time difference, experience in a highly deregulated market, and national culture of innovation all working in their favour.

NGC’s support would be invaluable in enabling EIL to further build its business, Mr Gowans said.

“It’s gratifying to see a large New Zealand corporate like NGC recognising both the potential of a smaller company and the value of investing in a local enterprise. That’s what will really fuel New Zealand’s growth.”

EIL’s platform has been designed for global application and the company was confident it would continue to grow foreign exchange earnings for New Zealand.

Mr Gowans said more than 6000 advanced metering devices in New Zealand and Australia were now linked to EIL’s platform and the arrangement with NGC meant that would grow to over 10,000 within the next 12 months.

NGC would also gain access to EIL’s advanced real-time energy management solutions, which enables users to monitor their consumption as it is happening.

After the transactions become unconditional, EIL ownership will be split between Hellaby Holdings and NGC at 25.05 percent each, and the EIL founding shareholders with a combined 28.1 percent. The balance will be held by approximately 50 smaller shareholders.

All the transactions are conditional on completion of documentation, expected by the end of August.

BACKGROUND INFORMATION

EIL, a privately-owned company, was formed in 1996 to develop and market energy measurement and data communications solutions for competitive energy markets. Energy Intellect subsequently expanded its systems to provide a global energy information platform that allows its customers to read and transact advanced metering information through to national market settlement authorities.

Today, EIL’s core business involves the continued development and globalisation of Energy Intellects web enabled software called the Interactive Energy Enterprise. The companies activities extend to the hosting and management of this platform for a number of its clients internationally

Energy Intellect has pioneered the development of real time metering and data communication solutions in Australasia, and is involved in establishing this technology to address the changing market requirements for energy management and demand side control.

The company maintains an internationally certified advanced metering calibration facility and designs and produces a host of electronic measurement and communications devices.

In 2001, EIL entered into a joint venture with Vector to form Stream Information Limited, which is New Zealand’s largest Time of Use (TOU) metering operating for commercial and industrial customers. EIL holds a 30 percent interest in Stream and provides Stream access to its data management services platform. This contract will continue to be hosted and managed by Energy Intellect EIL shareholders include NZX listed investment company Hellaby Holdings (25.1 percent) as well as the three individual founding shareholders.

NGC currently provides independent electricity metering services to 800,000 homes and businesses throughout New Zealand. NGC holds a 45 percent share of the mass-market metering installations and over 40 percent of the interval (TOU) metering installations.

In its 2002/03 interim report, NGC reported it had consolidated its position as New Zealand’s leading independent supplier of electricity metering services, had engaged additional resources for the expanded metering activity, and had developed a strategy to expand its service range, develop technology leadership and investigate the potential of the wider Australasian market.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news