Ovo, the UK energy upstart is making a push into the European energy market with the purchase of a majority stake in German provider 4hundred.
Ovo is the biggest energy provider in the UK outside of the “Big Six” incumbents, holding a 3 per cent market share in March this year.
Financial terms of the transaction were not disclosed. Ovo said the purchase will see it take a 55 per cent stake in Munich-based 4hundred by December 2018, with a pathway to 100 per cent ownership.
Ovo said the deal would form part of a strategy of growth and diversification internationally.
“The energy transition isn’t isolated to the UK. It’s global. The opportunity for the intelligent technology and IP we are developing here in the UK to be exported internationally is huge,” said Stephen Fitzpatrick, chief executive of Ovo.
The purchase will add a customer base of 2,000 green electricity customers to the 890,000 energy customers Ovo currently has in the UK. The company said 4hundred is on track to have 10,000 customers by the end of the year.
Ovo gives its UK customers the option of paying £5 extra a month to have their electricity supplies come solely from renewable sources like wind and solar. It is competing with other challenger companies such as Bulb for a bigger share of the UK market as well as eyeing opportunities in Europe.
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