Renewable energy firm Drax Group Plc has agreed to acquire Flexitricity, a UK‑based optimiser of flexible energy assets, from Quinbrook in a deal valuing the business at £36m.
Drax said on Wednesday that the acquisition was expected to deliver returns "significantly in excess" of its weighted average cost of capital.
Completion was expected to take place in the first quarter of 2026, pending regulatory approvals and other processes. Financial terms of the deal were not disclosed.
The FTSE 250-listed firm said Flexitricity's scalable optimisation platform will support its plans to build a gigawatt‑scale pipeline of battery energy storage system opportunities, including both physical assets and the optimisation of third‑party sites through route‑to‑market, floor and tolling structures.
Chief executive Will Gardiner said: "We are pleased to announce the acquisition of Flexitricity. We are ambitious about growing and developing our FlexGen business and Flexitricity's technology and team are a strong strategic fit for us.
"Adding Flexitricity's expertise and capability which uses AI and advanced machine learning software, delivered via their proprietary platform, supports our options for growth, particularly in our plans for a GW scale BESS portfolio as a part of our FlexGen business, while continuing to provide energy security to the UK power system and delivering new energy services for our customers."
As of 1000 GMT, Drax shares were up 0.40% at 883p.
Reporting by Iain Gilbert at Sharecast.com