Deal profile | Gadens advises Kaluza on strategic partnership and equity investment from AGL

Gadens has advised Kaluza Ltd (Kaluza) on a multi-year licensing agreement with AGL Energy Ltd (ASX: AGL) (AGL) as part of AGL’s Retail Transformation Programme as well as a US$100million investment from AGL. The series A investment into Kaluza will grant AGL a 20 per cent holding in Kaluza.

Owned by OVO Energy Ltd, Kaluza is a leading global energy software company. Kaluza’s pioneering technology platform enables energy utilities companies to reduce their cost to serve by automating their customer operations and unlocking additional value streams through the optimisation of energy usage across millions of connected devices. The Kaluza platform will be rolled out to AGL’s 4 million customers as part of its Retail Transformation Programme.

The transaction will also see AGL acquire a 20 per cent stake in Kaluza for cash consideration of US$100 million (AU$150 million). The strategic investment values Kaluza at around US$500 million, making it one of the largest energy-tech investment rounds. The investment builds on Kaluza’s proven track record of supporting retailers like OVO Energy in the UK and Australia and will support Kaluza’s strategic expansion further within Europe and into Japan and the US where utilities companies face similar pressures to transform their retail operations and reduce costs while adapting to the realities of managing the energy transition.

Gadens advised on all aspects of the transaction, including the agreement that will see the delivery of Kaluza’s technology platform to AGL and the investment documents governing AGL’s investment into Kaluza.

Commenting on the transaction, Kaluza’s CEO Melissa Gander, said: “Joining forces with AGL as its cornerstone partner to reimagine energy together is a significant milestone for Kaluza and a testament to the game-changing capabilities of our platform. We were pleased to have Gadens assist us with this transaction.”

Also commenting on the transaction, lead partner Michael Kenny, said: “It was a pleasure to assist the Kaluza team and we look forward to seeing the momentum that Kaluza will gain with a greater footprint throughout Australia and globally.”

Practice groups: Corporate.

Key team members: Lead Partner Michael Kenny was supported on the multi-year licensing agreement by Raisa Blanco (Special Counsel) and on the equity investment by Christopher Lau (Senior Associate).