海角视频 utility provider Yü Group has bought up the business customer book of council-owned Bristol Energy.
Yü Group paid £1.34m for the portfolio, which includes a number of public sector and business gas and electricity supply contracts running for up to three years.
The company will pay £1.24m this month, with another £100,000 deferred for three months, it said.
Bristol Energy’s B2B industry specialist staff will transfer to Yü Group as part of the deal.
According to AIM-listed Yü Group, Bristol Energy’s management team will provide “full support” during the transition of the contracts, with all parties following Ofgem’s best-practice rules.
The deal does not include Bristol Energy’s forward commodity purchases.
Based on management accounts, the B2B book, for the financial year to March 31, 2020, showed revenues of £15.2m and generated an operating loss of £0.48m.
Yü Group said the acquisition would add around 4,000 meter points to its current meter portfolio of 9,800 - an increase of around 40 per cent - and would "immediately enhance" earnings.
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Bobby Kalar, chief executive of Yü Group, said the management team’s plan was to transition Bristol Energy customers onto its platform “quickly and seamlessly” while enhancing value.
“We are delighted to have successfully executed the purchase of Bristol Energy’s B2B Book post extensive due diligence,” he said.
“The transaction allows the group to layer in a fantastic customer base to our accelerating organic portfolio and increase value by offering additional products and services not available previously."
“This acquisition forms part of our strategic growth plan, leverages our disciplined controls and scalable technology platform and highlights the group’s ability and appetite to scale," Mr Kalar added.
The news comes just two months after the local authority announced it was selling off Bristol Energy after posting huge losses.
The energy company was founded in 2015, but had soaked up £35million of council tax payers’ money and posted losses of £32.5million, accounts show.
Earlier this year, the council appointed professional services firm Ernst and Young to carry out an assessment of Bristol Energy's structure and future business viability.
The council said selling the company would “prevent any further investment” than already agreed.