KKR to buy Smart Metering Systems in £1.3n deal
Smart Metering Systems said on Thursday that it has agreed to be bought by US private equity firm KKR for about £1.3bn.
Under the terms of the deal, KKR will pay 955p per share in cash, which represents a premium of 40.4% to the closing share price on Wednesday.
SMS chief executive Tim Mortlock said: "KKR's offer recognises the strength and resilience of our model and will ensure SMS has the necessary capital to accelerate and unlock its full growth potential.
"The offer price represents a significant premium to the current share price and allows shareholders to realise immediate and attractive value for their shareholding."
Tara Davies, partner and co-head of European Infrastructure at KKR, said: "SMS has a strong asset base and a clear strategy across different business lines which are critical enablers of the UK's Net Zero goals, and we share the team's vision of putting SMS at the heart of the UK's energy transition.
"Achieving this growth opportunity requires significant capital of a scale, flexibility and certainty which is best facilitated in the private markets. KKR is a major investor in UK infrastructure and behind the energy transition, and we will bring our expertise and operational resources to bear in supporting SMS to invest at the level required and successfully scale its business over the long-term."