Telecommunications provider Amaysim has entered into the online energy retail market with the acquisition of Click Energy Group for $120 million.
The addition of an energy vertical accelerates the company's strategy of providing multiple services to Australian households and the "vision" of becoming the "remote control for the smart home".
Amaysim has a household customer base of 600,000; the acquisition will bring 136,000 from Click. The company expects to achieve an additional 300,000 homes in the next few years through multiple products, with a potential average household revenue of $200 per month.
The company expects to generate a combined pro-forma net revenue of $497 million.
Click is based in Melbourne and offers energy services to Victoria, NSW, Queensland and South Australia. Click also offers gas services to Victoria and New South Wales.
Amaysim chief executive and managing director Julian Ogrin said the acquisition was the most logical vertical in complementing the company's goal of increasing relevance in the Australian household.
"We see a significant opportunity for a virtual energy retailer to disrupt the larger incumbent players that own their own generating assets and are burdened with legacy systems and pricing structures," Ogrin added
The acquisition is expected to wrap by June 2017 and the payment will be funded with $40 million of Amaysim scrip, issued at $1.79, and $80 million of cash consideration to Click vendors..
Amaysim is four weeks away from launching its own branded NBN services, which, according to Ogrin, will enable Amaysim to communicate with its largest subscriber base around energy and mobile "as part of the forced migration event caused by NBN".
Click was established in 2006 and has 155,000 customer accounts, which represents 136,000 households. The energy provider expects to generate a net revenue of $215.2 million for the 2017 financial year.
Click chief executive and managing director Dominic Drenen will continue leading the business under the Amaysim Group. Click's team will also join Amaysim.
Click sells energy online with no lock-in contracts. It offers monthly billing and a do-it-yourself self-service platform. The energy provider works with channel partners, has white label relationships and its own utility connection service provider On the Move.
Back in 2014, Australian telephony provider Commander also entered into the energy reselling business when its parent company at the time, M2 Group, acquired Dodo. M2 has since become a Vocus Communications company.