Origin Energy will pay $58 million to purchase a Melbourne-based company that buys energy in bulk for apartment blocks.
Origin is buying OC Energy for an upfront payment of $33 million plus $25 million in deferred payments, it said on Friday.
The acquisition will add 55,000 customers to Origin, mostly in New South Wales and Victoria.
Another 30,000 customers are expected to be added as contracted developments are completed.
OC Energy is a embedded network provider, meaning it contracts with developers to provide electricity, hot water and natural gas in bulk for an entire apartment block in exchange for cost savings.
‘The purchase of OC Energy will strengthen our existing presence in centralised energy services,’ Origin chief executive Frank Calabria said.
‘Our centralised energy services provide customers with convenient access to competitive energy rates through shared infrastructure.’
Completion of the deal is targeted for this quarter.
Origin shares were up 6 cents, or 0.81 per cent, to $7.50, shortly after the open at 1019 AEDT on Friday.