Ace Software Exports Limited (Ace Software) has entered into a binding term sheet to acquire a strategic stake in MyUtilityGenius Limited and MyUtilityGenius Commercial Limited (MUG and MUGC), United Kingdom (UK) based energy technology and services companies. The proposed transaction forms part of Ace Software's international expansion and portfolio diversification strategy focused on regulated, technology led services driven by digitisation and sustainability imperatives. The companies deliver software platforms, analytics led services and advisory solutions for domestic and commercial energy markets.

The enterprise value for the combined entities is up to GBP five million (mn) and the consideration will comprise a combination of cash and a share swap through a preferential allotment of Ace Software equity, to be priced in accordance with SEBI norms and the prescribed regulatory formula. Upon completion Ace Software will hold 40 per cent of the fully diluted equity share capital on a post issue basis in each target company while securing substantive governance and control rights including majority board representation, affirmative voting and reserved matter rights. The agreement includes step up rights enabling an increase to majority shareholding subject to applicable laws and approvals.

Based on the governance and reserved rights the target companies are expected to qualify as subsidiaries of Ace Software under applicable law following completion and fulfilment of conditions precedent. The transaction remains subject to execution of definitive agreements, customary conditions precedent and regulatory approvals and is intended to provide scalable, data centric platforms in a developed market. The move is expected to support improved procurement efficiency, volatility management and customer engagement through API enabled acquisition tools and white label enrolment and switching platforms.

Ace Software operates within AQeDigital ecosystem and brings over two decades of experience in digital product engineering, cloud native solutions, data and analytics and enterprise application services to clients. The company described the investment as aligned with term strategic intent to enter regulated markets and leverage analytics driven decision support and flexible procurement solutions. Forward looking statements in the release indicated that outcomes depend on risks, uncertainties and approvals.