Partners Group has bought a majority stake in Budderfly and plans to invest over half a billion dollars in the US energy-as-a-service (EaaS) company.
The deal will lead to Edison Partners selling its entire stake in Budderfly, a company Edison has been invested in since June 2017.
Partners Group said it plans to transform Budderfly into a ”multi-billion-dollar infrastructure platform by investing to expand its customer base and solutions offering”.
Budderfly’s solutions include automated controls, proprietary software, metering, and a patented utility billing interface and billing system that currently supports over 400 utility companies in North America.
Todd Bright, partner and head of private infrastructure Americas at Partners Group, said: “We have tracked the energy efficiency sector as part of our thematic focus on decarbonisation and sustainability.
“Companies now face unprecedented scrutiny and pressure from investors, policymakers, and other stakeholders to take tangible action to deliver on climate goals, so the synergy between Budderfly’s market-leading position and unique business model combined with Partners Group’s focus on platform-building in thematic infrastructure comes at an opportune time.”
Patrick Langan, member of management, private infrastructure Americas, Partners Group, said: “Budderfly’s business model has strong infrastructure characteristics, with a sizeable and growing customer base served under long-term contracts that provide recurring revenues.
“A key part of our value creation plan will be expanding these service offerings and broadening Budderfly’s customer base.”
Al Subbloie, the founder and CEO of Budderfly, said: “On the back of continued strong growth, both in terms of new site installations and acquiring new customers, we are looking ahead to our exciting next chapter of expansion.
“We believe Partners Group’s experience scaling infrastructure platforms, as well as its operational expertise and deep financial resources, make the firm an ideal partner as we expand our footprint.”
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