OVO Energy to acquire SSE Energy for £500 million
Together they serve almost 5 million customers
OVO Energy has announced they’re to acquire SSE Energy for £500 million.
They’ll take on SSE’s customer base as well as all of their operations and employees for energy, telecoms and home services.
Subject to the necessary approval, it’s expected that the deal will be completed in either late 2019 or early 2020. SSE have said they’ll do all they can to ensure a smooth transition.
For the time being however, the two will continue to operate as separate entities meaning nothing will change for SSE customers in the short term.
This acquisition will significantly help OVO toward achieving their goal of providing everyone with clean, affordable energy
Millions more customers will now be able to take advantage of technologies will allow them to decarbonise their homes.
“SSE and OVO are a great fit. They share our values on sustainability and serving customers. They’ve built an excellent team that I’m really looking forward to working with,” said Stephen Fitzpatrick, CEO and Founder of OVO.
"OVO buying SSE is a seminal moment for the UK energy market. It’s like David buying Goliath and creates a massive new kid on the block," said Mark Todd, co-founder of Energy Helpline. "OVO now has a combined total of 5 million customers in the UK, with about 1 in every 5 homes getting their energy supply from them. British Gas will now be looking over their shoulder to the new number two on their tail."
"The union of Ovo and SSE seems to be a good match. Both are known for good customer service, renewable energy and each supports multiple brands with loyal customer bases. Ovo is expected to bring a fresher more tech savvy approach to the SSE business, which should mean updated services for its customers. We don’t expect there to be much impact on price; in energy you simply have to switch to get a good price.
"We will have to wait and see what the impact of this takeover is on the Big Six – with a new number 2 and npower still looking to exit the market this could be the start of a much bigger shake up.”