Specialist housing services provider Mears Group has acquired carbon reduction data firm IRT for a total consideration of up to £4.1m.
A statement explained that the deal was driven by requirements to decarbonise ageing housing stock, especially in affordable housing, due to significant increases in energy costs and the aim of meeting the Scottish Government’s targets of achieving net zero by 2045.
Executive director Alan Long commented: “The deal means we now have the in-house capacity to develop intelligent retrofit plans for our clients, while meaning we can assess the carbon reduction needs of any new properties entering our management portfolio.
“The technology from IRT was used to win three contracts under the Social Housing Decarbonisation Fund earlier this year, highlighting that this is a tested formula for successful future bids with our clients.”
Headquartered in Dundee, IRT provides a range of data-led services focussed at driving energy efficiency, decarbonisation and broader asset management activities.
It has developed a proprietary technology platform, DREam, which aims to simplify and accelerate retrofitting, by assessing energy performance of housing portfolios, optimising budgets and providing recommendations on the most efficient way to complete fit outs.
IRT is being acquired on a cash and debt free basis, consisting of an initial consideration of £3m and subsequent contingent consideration of up to £1.1m, payable over a two-year period following completion, subject to satisfactory performance against business development targets.
In the year to 31 December 2021, IRT reported revenues of £400,000 and an operating loss of £100,000 - although it is on track to deliver revenues of £800,000 during the full year 2022 and an operating profit of £200,000.
Mears will bring this expertise in-house, supporting pre-sales activity and helping to deliver carbon retrofit work, which is identified to be a significant market.
The group has more than 5,500 employees, developing, funding and implementing repairs, maintenance and regeneration services across the UK.
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