South African electronics manufacturer Ellies has announced that it has entered into an agreement to acquire alternative energy solutions provider, Bundu Power, for a total consideration of R202.6 million (~$12 million).
The Boksburg-based Bundu Power, founded in 2005, specialises in the distribution and rental of generators as well as the distribution and installation of solar and ancillary products, providing alternative energy solutions for residential, commercial, industrial, hospitality, agricultural and recreational users.
According to a statement on the Joburg Stock Exchange news service (SENS), Ellies is repositioning itself as a smart infrastructure business, which will include comprehensive solutions for alternative energy, water storage and harvesting, connectivity and smart home technology.
The acquisition will therefore act as the first building block of the new strategy and expand the Ellies portfolio of alternative energy solutions while providing Bundu Power with an expanded Southern African distribution network.
Ellies intends to fund the acquisition amount through a combination of equity and debt payable by the 2025 financial year.
With national electricity provider Eskom facing seemingly never-ending challenges, Ellies’ acquisition might be well timed as South Africans seek alternative power sources away from the faltering national grid.