July 1, 2016


Hansen Technologies Limited (ASX:HSN) is pleased to announce its subsidiary has executed definitive agreements with PPL Energy Funding Corporation (a subsidiary of NYSE listed PPL Corporation) to acquire PPL Solutions, LLC (“Solutions”). This follows the announcement on 10 May 2016 that the parties had signed a non-binding Letter of Intent. The transaction is effective from July 1 2016.

Headquartered in Bethlehem, Pennsylvania, Solutions provides billing, business processing outsourcing (“BPO”), call centre and information technology services to competitive electric and gas suppliers and regulated utilities in the US. The business has 230 staff, with the majority of these located at Solutions’ call centre facility in Hazelton, Pennsylvania.

Solutions is a strategically attractive business that is strongly aligned with Hansen’s key acquisition criteria: it sits within our core billing & customer care business; owns the intellectual property in its billing software; has recurring revenue streams; and extends Hansen’s footprint into a new market segment in the US.

The Solutions business adds business process outsourcing, customer care and Software-as-a-Service to Hansen’s strong portfolio of Electricity, Gas and Water products. This will position Hansen to sell to a segment of the market not previously addressable, and will provide a solution for new market entrants.

In addition, Solutions will add operational and billing subject matter experts to an already strong North American team, enhancing Hansen’s reputation as a thought leader in the utility billing systems market.

Solutions is expected to represent approximately 7% of the combined Hansen worldwide earnings before interest, tax, depreciation and amortisation (EBITDA). Given the BPO nature of the Solutions business and the services provided, the business operates on margins below  those historically achieved by Hansen.  The purchase price is expected to represent approximately 4 times Solutions’ EBITDA, and will be funded from Hansen’s internal cash resources.

 

About Hansen Technologies Limited

Hansen Technologies (ASX: HSN) is a global provider of customer care & billing, and meter data management software solutions for utilities (electricity, gas and water), Pay TV and telecommunications companies.The Hansen family of products, which has grown since 1971, includes: HUB, ICC, NirvanaSoft,Peace, Banner, naviBilling and Utilisoft. Hansen’s unique approach to best-fit solutions leverages its proprietary product sets to develop, deliver, and support high value solutions for clients globally. In addition Hansen also offers outsourcing and facilities management services from purpose built facilities. Hansen has offices in Australia, USA, New Zealand, China, Denmark, Germany, Argentina, India and the United Kingdom.

 
For further information contact:

Mr. Andrew Hansen
Managing Director
Hansen Technologies Limited
61 3 9840 3000

Mr. Niv Fernando
Chief Commercial Officer
Hansen Technologies Limited
61 3 9840 3000