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

 

Mercury sells Metrix smart metering business

Mercury NZ Ltd has today announced the sale of its smart-metering business, Metrix, to intelliHUB Group for a cash consideration of $270m.

Mercury Chief Executive Fraser Whineray says the sale releases capital and resources, simplifies the company and provides a tremendous opportunity for Metrix employees.

Metrix has been a strong performing business, operating and branded separately from Mercury’s core generation and retail activities. It is one of the country’s leading smart metering solution providers, managing over 460,000 meters with household and commercial connection points. These features made it attractive to a focused owner looking to advance the role of smart metering technologies in New Zealand and Australia even further, Mr Whineray said.

Mercury’s retail business has metering service agreements with all significant metering service providers. Under the sale agreement Mercury’s retail business will continue to be a key partner of Metrix, benefitting from the metering services and innovation that Metrix will provide under its new ownership.

New natural owner
“The sale price achieved is recognition of the expertise, scale and opportunity Metrix represents. While Mercury had its own strategy for Metrix, negotiations with intelliHUB Group have presented an opportunity that is timely for both parties,” Mr Whineray said.
“IntelliHUB is a natural owner for the business given its experience and growth in Australia, and its expansion into New Zealand, partnering with Trustpower to roll-out smart meters across its customer base.”

IntelliHUB’s CEO, Adrian Clark, said he was excited by the opportunity provided by Metrix.

“Metrix’s large installed meter base, deep customer relationships and innovation platform, make this a natural acquisition for intelliHUB. It is also clearly aligned to our strategy of focusing on growth and innovation in smart metering services,” Mr Clark said.

Transaction details
The transaction is expected to settle on 1 March 2019. The annualised reduction to EBITDAF from the sale is forecast to be $28m. Further details are provided in the accompanying presentation.

Mercury’s proceeds from sale will be applied to the repayment of net debt in the first instance. Further application of proceeds will be considered with the company’s FY2019 results.
Metrix’s Chief Executive Matt Olde will remain as a Mercury executive with an initial focus of ensuring a successful Metrix transition to intelliHUB. All other Metrix employees transition as part of the sale.

Flagstaff Partners and Chapman Tripp acted as financial and legal advisers to Mercury on this transaction.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>

ALSO:

Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>

ALSO:


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO:


Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO: