Eltel purchases U-SERVE metering company for access to German market
Written By: Stratton Report
April 22, 2016
On April 22, Eltel announced it had acquired U-SERV GmbH, an electricity and gas metering company in Germany.
According to Eltel, the firm has more than five million meter installations including new order backlog of 1.6 million installations. This acquisition will expand Eltel’s footprint to the German market.
U-SERV has net sales of approximately EUR 9 million ($10.1 million).
Further Eltel has agreed to acquire field service assets of EVB Billing und Services GmbH, a subsidiary of ATV Energie GmbH. The assets comprise EVB’s customer base in metering related field services and an offer to the personnel to transfer to Eltel. As part of the acquisition of U-SERV, the existing business development agreement between U-SERV and ATV Energie GmbH will be transferred to Eltel. Through this agreement, ATV, EVB and Eltel will collaborate to expand the business for smart metering services in Germany.
In Germany new legislation, Digitale Energiewende, has been proposed to oblige utilities to deploy intelligent meter systems during 2017 to 2032. Tendering for major smart metering projects is expected to start in 2016. In Germany the total amount of electricity meter points amounts to 43 million. Another growth opportunity is provided in the gas metering market.
The acquisition of U-SERV and the asset deal with ATV are expected to be closed during May.
Juha Luusua, President – Eltel Power Distribution commented:
“Eltel has been preparing an entry in the German smart metering market for some time. After careful analysis and negotiations, we are happy to finalize this process with the acquisition of German U-SERV. With the experience and current position of U-SERV, combined with the collaboration agreements with the business development partners ATV and EVB, we strongly believe that we have a winning team in place. We welcome the employees of U-SERV and the field service team of EVB to Eltel to build a smarter German energy system together.”