Swedish private equity company EQT and Singapore wealth fund GIC are to acquire a majority stake in Calisen, an independent smart metering company in the UK.

Calisen is a provider of smart meters and energy transition infrastructure in the UK; its purpose is to accelerate the development of a cleaner, more efficient and sustainable energy sector.

Long-term investment by EQT and GIC should support Calisen’s growth ambitions in the UK smart meter market and abroad, as well as expansion into adjacent sectors.

EQT and GIC will jointly acquire a majority stake in Calisen from funds managed by Global Infrastructure Partners (GIP), part of BlackRock, the infrastructure business of Goldman Sachs and Mubadala Investment. Equitix will remain a minority investor.

Headquartered in Manchester, Calisen is an independent owner and manager of energy infrastructure assets. The company provides smart meters, electric vehicle charging, solar, battery and heat pump installations, meter reading, maintenance, and ancillary service.

Operating under long-term contracts, Calisen has established itself as a provider of choice in the UK thanks to its scale, operational ability and customer relationships. With an installed base of approximately 16 million meters, it is well-positioned to capitalise on market trends underpinned by the continued energy transition.

The roll-out of smart meters is expected to continue to increase due to a supportive regulatory framework towards net zero as well as demand from energy suppliers and customers to support energy efficiency and the balancing of the electricity grid.

EQT and GIC will support Calisen’s long-term prospects by driving the continued rollout of its energy transition-related assets, including smart meters, heat pumps and renewable energy systems, both in the UK and abroad. It will also explore expanding into adjacent sectors, such as smart water metering.

“Calisen is an exciting investment opportunity, combining significant downside protection and cash flow visibility with tangible upside potential,” said Kunal Koya, partner at EQT (eqtgroup.com). “Its critical role in the UK’s energy transition aligns perfectly with EQT’s commitment to investing in essential infrastructure that contributes to a more sustainable future. We look forward to partnering with management and GIC to embark on Calisen’s next phase of growth.”

Ang Eng Seng, chief investment officer at GIC, added: “We are pleased to be investing in Calisen, a high-quality business with a strong market position and good sector tailwinds. Through its integrated business model, Calisen owns, installs, reads and maintains the meters throughout their useful life. With its steady cash flows and long-term contracts, we are confident in Calisen’s growth potential as a core infrastructure investment.”

And George Kay, head of infrastructure for GIC (www.gic.com.sg) in Europe, said: “Smart meters have a crucial role to play in the energy transition. While they are installed at the consumer’s home, they create value across the supply chain. Consumers can track their consumption and potentially lower their bills through access to different tariffs, while suppliers and grid operators can save costs. Our investment will support the roll out of meters across the UK and we look forward to working with management, EQT and Equitix to grow the business for the long term.”

The transaction is subject to the satisfaction of certain conditions including regulatory approvals.

“I am delighted to welcome EQT and GIC as new long-term majority owners of the business alongside our continuing investor,” said Sean Latus, CEO of Calisen (www.calisen.com). “Calisen plays an active role in the decarbonisation of the UK economy, a position we intend to strengthen with the support of all of our shareholders. EQT and GIC’s experience in the energy sector will be invaluable as we look to leverage our scale and customer relationships to significantly expand our smart meter portfolio and replicate our success in adjacent areas.”