AKKR preps sale of Energy Services Group

Accel-KKR is looking to sell Energy Services Group (ESG), three sources familiar with the process told Buyouts.

The process will kick off in 2020, one of the sources said.

ESG, based out of Norwell, Massachusetts, is a software-as-a-service provider of business process solutions in the retail energy industry. The company providers SaaS tools for transaction management, billing and customer information, wholesale forecasting and scheduling, storage and pipeline management, among other services.

Energy Services Group produced around $100 million in annual revenue and around $40 million in Ebitda, the people said.

The deal can value the company between $600 million and $900 million, one person said.

Accel-KKR invested in ESG in April 2016. Since then, the firm has completed four add-ons to the ESG’s platform: Utiligroup, iSigma, Latitude Technologies and Aprose Solutions. All companies provide technology-driven services for the energy and utilities industry.

Accel-KKR, based in Menlo Park, California, invests in middle-market software and technology-enabled services. The firm is targeting $2.55 billion in its sixth fund, according to an SEC filing.

The firm raised more than $1.3 billion in its latest fund, Fund V, which closed in 2015.

ESG is not the only technology-driven energy company that went on the block recently.

RS Energy Group, a provider of analytics and data-driven energy intelligence, backed by Warburg Pincus, is also up for sale, Buyouts reported last week.

AKKR declined to comment. ESG did not return Buyouts‘ request for comment. Goldman Sachs did not comment.

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