AGL Energy (ASX:AGL) has entered into a binding agreement for the acquisition of Click Energy Group, a wholly owned subsidiary of amaysim Australia, for $115 million.
The transaction does not include amaysim’s mobile customer base or business.
AGL CEO Brett Redman says the purchase of the Click Energy business and its connection service provider, On The Move, is another step towards AGL achieving its target of 4.5 million customer services by 2024.
AGL expects the acquisition to be modestly accretive to AGL’s underlying earnings. The acquisition will be financed from AGL’s existing debt facilities.
AGL anticipates recognising transaction and integration costs of approximately $40 million as a significant item in financial year 2021, reflecting the full cost of integration.
The transaction translates to a cost per service provided of approximately $442, excluding the valuation applied to the On The Move business.
Completion of the acquisition is expected to occur on or by 30 September 2020, subject to the satisfaction of a customary condition precedent.
Shares in AGL (ASX:AGL) are trading 0.54 per cent lower at $14.71.