NGE Energies Solutions has announced the acquisition of Sogetra, a specialist in electrical works and energy infrastructure based in the Orne department. The transaction continues the group’s external growth strategy in electrical infrastructure and strengthens its regional footprint in North-West France.
Analysis by the experts at Auris Finance, M&A and corporate finance advisory firm.
Founded in 1961, Sogetra has long-standing local roots in the Orne. The company generates revenue of €4.3 million and employs 24 people. Its activities cover electricity distribution networks, public and sports lighting, decorative lighting and heritage illumination, as well as signalling and electric vehicle charging infrastructure. This range of activities is an asset for a group seeking to broaden its offering beyond distribution networks alone. The company works notably for Enedis and for local energy syndicates, clients with which it has built long-term relationships.
Established contracts with local stakeholders
The acquisition allows NGE Energies Solutions to take on skills and contracts already in place, rather than having to build them up gradually. Sogetra holds several framework agreements, which secure long-term relationships with its concession holders and energy syndicates. This type of contract provides valuable visibility over activity and limits exposure to the uncertainties of one-off tenders, a factor that generally weighs in the valuation of this kind of target. For NGE Energies Solutions, the benefit therefore extends beyond the revenue acquired to the portfolio of institutional relationships and the credibility established with public and semi-public clients in the region.
A broader regional network
This transaction complements NGE Energies Solutions’ locations in North-West France, a few months after the integration of the teams of CDH, a Loire-Atlantique company specialising in energy and photovoltaic infrastructure. The group now has a stronger presence across Lower Normandy, Pays de la Loire and Brittany, intended to improve its ability to support local clients and its responsiveness in regional markets.
Jean-Baptiste Gonnet, President of NGE Energies Solutions, states that the group aims to establish itself as a leading player in energy and electrical infrastructure, a development which, in his view, depends on strengthening its regional presence and its expertise.
A strategy driven by the electrification of end uses
This acquisition also responds to changes in the energy sector. The electrification of end uses is transforming infrastructure needs, as electricity networks must support the growth of new uses and renewable energy. Electric vehicle charging infrastructure is a developing market in this respect, as are needs related to grid connection and electricity transmission. Against this backdrop, the long-standing expertise of companies such as Sogetra takes on new value, as it covers needs that local authorities and network operators must now address in a more integrated way.
With Sogetra, NGE Energies Solutions adds a new location to its network and continues its development in North-West France, while consolidating its relationships with regional stakeholders. More broadly, this transaction reflects a consolidation trend in the electrical trades, where national groups are seeking to absorb well-established local companies in order to secure their position in markets driven by the energy transition.
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