Accenture Buys EnergyQuote JHA; Illustrates That Integrated Energy Solutions are the Only Viable Option in the UK Energy Services Market
Rather than the pace of consolidation slowing down, 2015 looks set to be the biggest year yet for M&A activity in the UK Energy Services sector. Accenture’s acquisition of EnergyQuote JHA yesterday is just the latest in a series of investments seen in the sector in 2015, and follows three separate acquisitions in April. Inprova acquired Energy Team and the procurement arm of Ener-G, Npower = bought RUMM and Utilitywise snapped up t-mac.
Accenture will use this acquisition of the energy procurement specialist to bolster its capabilities in Europe, and the UK specifically, for its energy management as-a-service offering. The acquisition follows on the heels of Accenture’s purchase of the US procurement firm Procurian for $375m in 2013. This is a sensible play from Accenture who recognise that energy procurement can often be a launch pad for selling broader energy efficiency and building performance optimisation services.
So what does this mean for the UK Energy Services market? Looking at the UK results from our2015 global survey of heads of energy, the appetite for outsourcing energy management processes, such as energy procurement and energy data collection and analysis, continues to grow. Beyond this, a growing number of corporates are looking for a provider who can deliver all of their energy management needs, avoiding the need to contract with a series of different point solution providers.
The series of acquisitions we are seeing in the market reflects this buying trend and firms with ambitions to be top players in the energy services market are scrambling to fill holes in their propositions. Our latest report shows a limited number of buyout opportunities now remain and firms will need to move quickly if they are to secure their top targets. You can hear more insights and analysis on this shifting market landscape, as well as the launch of our market size and forecast for the UK energy services market, at our Energy Innovation Summit in London on October 8th.