OVO acquires energy arm of SSE in £500m deal
National energy firm SSE has agreed to sell its energy service business to OVO Energy Ltd in a £500m deal.
Founded in 2009 by Stephen Fitzpatrick, OVO specialises in offering domestic energy services throughout the UK.
Comprising £400m cash and £100m in loan notes, the acquisition will see SSE’s energy business join OVO Energy to service a combined total of 7 million households.
The news comes as the energy sector’s biggest players continue to experience disruption from ‘challenger’ ventures and the government’s energy price cap, with OVO seeking to take the lion’s share in what founder Stephen Fitzpatrick called a “changing market”.
Stephen Fitzpatrick, CEO and founder of OVO, explained: “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.
“SSE and OVO are a great fit. They share our values on sustainability and serving customers. They’ve built an excellent team that I’m really looking forward to working with.”
Commenting on the deal, Alistair Phillips-Davies, chief executive of SSE, added: “We have long believed that a dedicated, focused and independent retailer will ultimately best serve customers, employees and other stakeholders - and this is an excellent opportunity to make that happen.
“OVO shares our relentless focus on customer service and has a bold vision for how technology can reshape the future of the industry. I’m confident that this is the best outcome for the SSE Energy Services business.”
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