Herbert Smith Freehills (HSF) and
Allens have acted in the sale of a smart metering business.
HSF acted for Ausgrid, which acquired the Active Stream metering business from AGL Energy, which was advised by Allens, for an undisclosed sum.
Part of the deal is a service agreement under which Active Stream will continue to supply non-exclusive metering services to AGL after the deal closes.
Active Stream has more than 230,000 digital meters across New South Wales, Queensland, and South Australia. It is expected to generate about $25m in post-tax profit for AGL.
The HSF team was led by partner David Ryan, who was supported by senior associates Jennifer Harding and Bailee Walker.
“The Australian Energy Market Commission’s Power of Choice rule changes make this an exciting time for the digital metering industry. Smart metering is likely to be key to a range of developments in customer engagement with the electricity market,” Ryan said. “We are delighted to have assisted Ausgrid as it creates a key platform to capitalise on the expected growth in this market.”
He added that this market is expected to grow.
The Allens team was led by managing associate Melissa Keane. She was supported by partners Anna Collyer and Wendy Rae.
“We expect this transaction will be the first of many in the sector as a result of the Power of Choice reforms, and we're proud to be leading the market with this advice,” Keane said.
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