Quinbrook sells Flexitricity optimizer and Fortescue’s analytics in digital BESS services M&A deal

Australian mining giant Fortescue has broadened its battery intelligence platform by acquiring analytics provider Zitara. Additionally, Drax has entered an agreement to acquire the optimiser Flexitricity, reinforcing the battery energy storage system (BESS) industry. These transfers of software-based service providers were recently disclosed by Solar Power Portal.

Global investment manager Quinbrook sold its energy optimisation business Flexitricity to Drax Group for £42 million, valuing Flexitricity at £36 million with an additional £6 million covering net working capital and cash adjustment. Approval from the UK government is pending for the acquisition to finalize, with Ofgem, the UK energy regulator, reviewing the transaction.

Initially acquired in 2020 for £15.2 million, Flexitricity’s portfolio has since grown under Quinbrook’s management to around 1.3GW of distributed capacity from an initial 540MW flexible energy assets. Moreover, Quinbrook also owns Habitat Energy Limited, another UK-based optimisation and trading platform.

Flexitricity specializes in providing optimisation and route-to-market services for asset owners through its proprietary controls platform that enables participation in various energy markets primarily in the UK. Drax’s acquisition of Flexitricity supports its plan to develop a gigawatt pipeline of BESS with both physical assets and optimisation capabilities for third-party assets.

On the other hand, Fortescue’s battery intelligence platform, Elysia, is expanding its services by incorporating Zitara, an on-premise controls company, into its battery intelligence portfolio. This aligns with Elysia’s objective to bridge battery intelligence in the cloud to action on-site. Zitara’s success in the large-scale storage space complements Elysia’s solutions for automotive and other applications.

Elysia, owned by Fortescue, provides cloud and embedded software to enhance battery performance across various sectors. Zitara’s integration into Elysia will operate as a control layer, offering a mechanism to act on insights generated by battery analytics. Fortescue plans to implement the Elysia-Zitara combo at its large-scale BESS installations in the Pilbara, Australia, making Fortescue Zitara’s largest deployment.

Overall, the acquisitions of Zitara by Fortescue and Flexitricity by Drax strengthen the BESS industry’s capabilities and growth potential. The strategic moves by these energy market players reflect a deeper commitment to optimizing energy assets and enhancing battery performance for a sustainable future.