Gentrack Group Finalises NZ$24 Million Acquisition of Energy SaaS Provider Factor

Gentrack Group Limited has completed the acquisition of Prospero Energy Limited, a New Zealand-founded software-as-a-service organisation trading as Factor. The transaction, finalised on 15 May 2026, carries an enterprise value of NZ$24 million and includes a potential earn-out of NZ$10 million. This strategic move is designed to integrate Factor’s specialised on-demand energy pricing technology into the Gentrack g2 energy retail platform, specifically targeting the commercial and industrial electricity sectors in Australia and the United Kingdom.

The acquisition was funded entirely from Gentrack’s existing cash reserves, which stood at NZ$73.2 million as of the most recent reporting period. The deal coincides with the release of Gentrack’s half-year results for 18 May 2026, where the company also announced an on-market share buyback programme of up to NZ$20 million to be conducted over the next 12 months. Following the announcement, Gentrack’s stock price rose by 7.06%, closing at NZ$3.49 on the NZX.

Strategic Integration and Machine Learning Capabilities

Factor provides a cloud-native platform that utilises Machine Learning to price and manage complex commercial electricity contracts at scale. By incorporating this technology, Gentrack aims to enhance its capabilities for utility providers who manage large-scale energy portfolios. The integration into the g2 energy retail platform allows for more sophisticated risk management and margin optimisation in volatile energy markets. This is particularly relevant as businesses currently account for approximately 70% of global electricity consumption, representing an annual transaction value of roughly US$1 trillion across the commercial, industrial, and agricultural sectors.

The acquisition follows a period of expansion for Gentrack, which previously announced the acquisition of Dubai Technology Partners (DTP) on 30 April 2026. The addition of Factor is intended to bolster Gentrack’s business-to-business energy retail segment, providing tools that can handle the increasing complexity of modern energy grids, which now include more distributed generation and renewable sources.

Financial Terms and Performance Targets

The financial structure of the deal includes a potential NZ$10 million earn-out, which is contingent on Factor achieving specific performance milestones. Specifically, the earn-out is tied to Factor’s Annual Recurring Revenues (ARR) reaching approximately NZ$17 million within three years of the acquisition completion. While the acquisition is expected to have a limited impact on Gentrack’s total revenue for the FY26 financial year, the company projects the transaction will be earnings per share (EPS) accretive by FY28.