Energy One Group to acquire eZ-nergy – Initial Thoughts

Just before Christmas, I got an announcement in my email. Energy One Group had agreed to buy eZ-nergy was the announcement. We hope to talk with Energy One early in the New Year but I thought in the quiet between Christmas and New Year, I’d write a few words about the acquisition. Energy One, for those unfamiliar, is the leading Australian vendor of ETRM and related software with quite a presence in those markets. It is also a public company. Around a year ago, Energy One also acquired UK-based ETRM vendor Contigo which has a strong and growing presence in UK and European energy markets. eZ-nergy is a French supplier of logistics software that has also recently got into the short-term power and gas trading space and also offers logistics as a service using its own software. As the announcement notes, Contigo and eZ-nergy have already worked together for some time and in that process have done a lot of work to unify and bring the products together.

To ComTech, this is an acquisition that makes perfect sense. While Contigo has a logistics product for UK markets, it doesn’t have anything for the broader European markets and that is why it had partnered with eZ-nergy in the past. Furthermore, although Contigo has made progress towards real-time and short-term trading markets, this has been to mostly bolster its ETRM solution in this area. There is little or no overlap in product sets it seems to us and the two suites are entirely complimentary. The combination of the two entities under the Energy One banner seems to be beneficial for everyone concerned and puts the industry on notice that energy One is on track to become a serious global supplier in the power & gas software market.

Hopefully, once the holidays are over, we will be able to get comments from the various players in the transaction.

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