£4bn global investment fund acquires controlling stake in Wirral power grid management specialist EA Technology, which generates annual revenues of £30m. Tony McDonough reports
Soaring demand for power grid management has prompted global investor Summa Equity to acquire a controlling stake in Wirral-based EA Technology.
Based at Capenhurst, not far from Chester, EA Technology has seen rapid growth as power grids across the world switch from fossil fuels to renewable energy. Its most recent annual accounts reveal annual revenues of £30m, 54% up on the previous year.
The accounts, for the 12 months to March 31, 2023, also revealed pre-tax profits of almost £2m and net assets of more than £8m. They also showed the company employs more than 200 people.
EA offers a portfolio of smart grid technologies to companies around the world. It sells grid monitoring instruments, specialist software, smart grid consultancy and training. It operates subsidiaries in Singapore, Australia, the US and China.
Switching power grids from gas or coal to renewables such as wind and solar creates complex challenges when it comes to balancing electricity demand and supply.
This puts EA at the forefront of a business sector that is set to see huge growth over the coming years. Based in Stockholm, Summa Equity has more than £4bn of equity under management and specialises in investing in energy transition.
Summa has taken a controlling stake in EA although both parties have declined to reveal the percentage or the value of the equity sale.
Robert Davis, chief executive of EA, said: “This partnership with Summa Equity will provide us with invaluable expertise and global growth opportunities.
“We have been meticulously evaluating potential investors, ensuring alignment with our mission and values, and Summa embodies that alignment.
“This investment will allow us to expand our products and solutions into new international markets while maintaining EA Technology as an exciting workplace.
“Additionally, as a UK business based in Cheshire, this investment will further invigorate the local economy, reinforcing our commitment to being a thriving technology leader.”
Founded in 1966, EA has established itself as a global leader in asset management and monitoring for electricity networks and assets and finds itself on the cusp of a lucrative period as the world re-engineers how it generates and distributes electricity.
Gisle Glück Evensen, partner at Summa Equity, added: “Transitioning from a fossil fuel-based system to renewables presents a significant challenge to today’s electricity grids, driven by rapidly increasing electricity demand, intermittency and multi-directional flows.
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“Solving these challenges is essential to achieve energy decarbonisation and presents a multi-generational investment opportunity to upgrade and modernise grid infrastructure.
“By partnering with EA Technology, we aim to accelerate the roll-out of EA’s industry-leading smart grid technology in the UK and internationally, accelerating the transition to a cleaner, more sustainable energy future.”