Ricardo PLC Ricardo Completes Acquisition (7346N)
25 Enero 2023 - 1:00AM
UK Regulatory
TIDMRCDO
RNS Number : 7346N
Ricardo PLC
25 January 2023
RNS
Ricardo plc completes acquisition of E3-Modelling to expand its
environmental modelling tools
Ricardo plc, a global strategic, environmental and engineering
consulting company, is pleased to announce the acquisition of a 93%
shareholding of E3-Modelling S.A (E3M), a consultancy which
specialises in delivering advanced empirical modelling of the
energy-economy-environment nexus, for a consideration of
GBP24m.
Background to E3M
E3M's 34-strong team develops and maintains large-scale models
across the energy, environment and transport sectors. Its expertise
focuses on the design and impact analysis of the transition of all
possible types of power generation technologies, several types of
alternative green fuels, energy demand efficiency and mobility
restructuring, taking into account the impact of major energy
policies on the economies of European countries and globally, with
details for more than 50 economic activities. Its integrated
modelling tools provide informed, transparent and robust analysis
as well as recommendations for its high-profile clients which
include the European Commission, national governments, energy
regulators and a number of private companies in the energy and
transport sectors, financial institutions and strategic
consultancies.
Over the past 30 years, E3M has carried out consultancy on every
major European energy and climate policy initiative, and its
large-scale energy, economy and transport models have been applied
at the very heart of European Commission policymaking.
Acquisition rationale:
E3M provides digital modelling capabilities right across the
markets that Ricardo serves, making the acquisition highly
complementary to Ricardo's unique position at the intersection of
the energy, environment and mobility agendas. To date, the use of
E3M's models has largely focused on Europe. The combination of
E3M's capabilities and expertise with Ricardo's global footprint,
services and diversified market expansion will support the Group in
creating additional value for its global client base that are
focused on their transition towards a low-carbon future.
The acquisition of E3M supports the Company's ambition to be a
leader in environmental and energy transition solutions and fits
wells within its M&A strategy of acquiring businesses that
offer high margin, high growth and lower capital intensity with
digital repeatable solutions.
Acquisition details:
Under the terms of the Acquisition, Ricardo has acquired a 93%
shareholding for a cash consideration of GBP24m of which GBP19m is
payable on completion. The deferred earn out of GBP5m will be paid
after the 31 December 2023, subject to the achievement of certain
performance metrics . The resulting ownership model allows for its
founders to share in the successful growth in the company. Ricardo
retains full control and voting rights in E3M.
In its draft unaudited accounts for the year ended 31 December
2022, E3M reported revenues of c.GBP4m and an EBITDA margin of
c.45%.
Following full integration and realisation of synergies, the
Board expects investment returns above Group WACC in the
short-term.
Graham Ritchie, Chief Executive Officer of Ricardo, said:
"Ricardo's acquisition of E3-Modelling is fully aligned with our
ambition to become a global leader in strategy and engineering
consultancy for environmental and energy-transition solutions. It
provides an opportunity to deliver repeatable digital models
focused on energy markets, climate change and the decarbonisation
of transport to governments and corporate clients globally. We
already have a strong working relationship with E3-Modelling having
worked together for over 10 years, and this acquisition is a
natural advancement, combining our skillsets to offer a
transformational contribution to Ricardo's energy and environmental
services portfolio."
About Ricardo
Ricardo plc is a global strategic, environmental, and
engineering consulting company, listed on the London Stock
Exchange. With over 100 years of engineering excellence and close
to 3,000 colleagues in more than 20 countries, we provide
exceptional levels of expertise in delivering innovative
cross-sector sustainable outcomes to support energy transition and
scarce resources, environmental services together with safe and
smart mobility. Our global team of consultants, environmental
specialists, engineers and scientists support our customers to
solve the most complex and dynamic challenges to help achieve a
safe and sustainable world. Visit www.ricardo.com
About E3-Modelling
E3-Modelling is a société anonyme (S.A.) company, established in
Greece, as a knowledge-intensive consulting company. We deliver
consulting services based on the large-scale empirical modelling of
the economy-energy-environment nexus: PRIMES, GEM-E3 and
Prometheus. We focus on the design of transition in the energy
market and systems, both demand and supply of energy, towards green
and climate-friendly structures and technologies. With the
modelling, we help to assess the transitions from economic, policy
and implementation perspectives putting emphasis on the functioning
of the system and the markets as a whole when policy instruments
influence behaviours and market outcomes. Visit
www.e3modelling.com
Media contacts:
Natasha Perfect, Ricardo Natasha.perfect@ricardo.com
Elisabeth Cowell, SECNewgate ricardo@secnewgate.co.uk
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