Firms: Herbert Smith Freehills (Ausgrid); KPMG (Ausgrid); Allens (AGL Energy Limited)
Deal: Ausgrid has acquired the Active Stream smart metering business from AGL Energy Limited.
Key players: The Herbert Smith Freehills team was led by partner David Ryan, with assistance from senior associates Jennifer Harding and Bailee Walker.
The Allens team comprised managing associate Melissa Keane, and partners Anna Collyer and Wendy Rae.
Deal significance: According to a statement from Herbert Smith Freehills, Active Stream has more than 230,000 digital meters across New South Wales, Queensland and South Australia.
“As part of the transaction, the parties will enter into a services agreement under which Active Stream will continue to supply non-exclusive metering services to AGL following completion”, the firm said.
“The Active Stream business will be operated by Ausgrid as a key foundation of its new ‘unregulated’ business, established to comply with the Australian Energy Regulator’s requirements for ring-fencing by electricity network businesses.”
Commenting further on the transaction, Herbert Smith Freehills partner David Ryan said: “The Australian Energy Market Commission’s Power of Choice rule changes make this an exciting time for the digital metering industry”.
“Smart metering is likely to be key to a range of developments in customer engagement with the electricity market,” he said.
“We are delighted to have assisted Ausgrid as it creates a key platform to capitalise on the expected growth in this market.”
Allens managing associate Melissa Keane also spoke on behalf of her firm on the significance of the transaction.
"We congratulate AGL on this market-leading sale, part of its broader strategy to become technology agnostic in its provision of products and services," she said.
"We expect this transaction will be the first of many in the sector as a result of the Power of Choice reforms, and we're proud to be leading the market with this advice."