Glasgow-based Aggreko, the world’s largest temporary power firm, announced a £40 million agreement to acquire smart energy and battery storage technology company Younicos.
Based in Berlin and Austin, Texas, Younicos has invested heavily in R&D since it was founded in 2005.
Its CEO, Stephen Prince, will now report directly to Chris Weston, Aggreko chief executive.
“This acquisition strengthens our position as global energy markets continue to evolve and is in line with our strategy to invest in technology in order to reduce the cost of energy for our customers,” said Aggreko.
“Younicos delivers smart energy solutions integrating battery storage, which are modular and scalable.
“Its knowledge of batteries combined with proprietary control systems, enables the seamless integration and management of all forms of power, including thermal, renewable and battery energy resources; this is becoming critical in an increasingly distributed energy market …
“The capabilities brought by Younicos, leveraged through our global footprint and experience in distributed power generation, are compelling.
“The Younicos integration and control systems, combined with batteries, can be deployed across our existing business to lower the cost of energy, ensure reliability and reduce carbon emissions for our customers around the world.”
Aggreko said that for the calendar year 2016, Younicos had revenues of £7 million and made an operating loss of £15 million.
“We expect it to be loss making in the short term and therefore earnings dilutive,” added Aggreko. “The investment will be made in cash.”
Aggreko CEO Chris Weston said: “As energy markets continue to decarbonise, decentralise and become more digital, the integration and control of multiple energy sources, including thermal and renewable, will be essential to ensure the provision of reliable power.
“As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.
“Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy.”
Younicos CEO Stephen Prince said: “We are delighted to be joining with a market leading power provider in Aggreko.
“Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future.
“Integration and management of multiple distributed energy sources will be necessary to optimise energy systems and deliver customers with greater stability at a lower economic and environmental cost.”
