learnd, a UK-based BMS integrator, announced two acquisitions in February 2024 – Ashdown Controls in Ireland and BG Energy Solutions in the UK.

This Research Note highlights the buy and build strategy of learnd SE, a Luxembourg public company, since the completion of their SPAC listing in January 2023 and their mission to become the leading energy management provider throughout Europe.

learnd Business Model

Founded in 2020, learnd Group provides a number of solutions businesses that provide design, installation, service, and maintenance in respect of Building Management Systems (BMS) and Building Energy Management Systems (BEMS). A wide range of solutions are offered from manufacturers such as Trend, Siemens, Schneider Electric and Tridium.

The business model enables the group to pursue a strategy of providing data for their customers to manage their energy usage on their open data platforms as well as providing delivery and monitoring services. They claim to manage one in 15 large non-residential buildings across the UK, since the BGES acquisition.

Buy and Build Strategy and Execution

Learnd’s buy and build strategy is focused on acquiring profitable companies that have delivery capabilities and long-standing customer relationships. They then intend to increase the profitability of these companies through their integration approach and by upselling proprietary platform technology to reduce energy consumption, undertake load management, and provide demand response services to the acquired client base.

Our May 2023 analysis covered the acquisition history of learnd since it was founded in 2020. At that date, their latest acquisition was Complete Energy Controls, a small systems integrator based in Scotland with an estimated 2023 revenue of GBP 3.75 million.

Note that the proposed acquisition of Kendra Energy Solutions, a leading BMS player in the UK, with estimated 2023 revenues of around GBP 20 million announced in April 2023 has not been completed to date.

learnd reported 2022 revenues of €33.1 million. In June 2023, the group estimated its 2023 revenues around double 2022 and an EBITDA margin > 10%. With a strong pipeline of near-term acquisitions in Europe and the UK, learnd was expected to achieve over €60 million in revenues in 2023.

This was a decrease from the €100 million revenue forecast given in April 2023. 2023 full-year accounts for the group are not scheduled for reporting until 30th April 2024.

The long-term growth opportunity for the group was estimated to reach €380 million in revenues by 2027.

Ashdown Controls Acquisition

learnd announced its first EU acquisition in February 2024. Founded in 1989, Ashdown Controls is one of the leading independent installers and service providers of Building Management Systems in Ireland and the UK, with their two offices located in Dublin and Antrim.

Their tech customer base will further expand learnd’s data centre portfolio and provides a network of customers and building systems that can be connected with learnd’s technology and continue to fuel the journey to net zero. LinkedIn reports 78 employees.

BG Energy Solutions Acquisition

learnd also announced a second 2024 acquisition in February 2024. The BGES group is a long-established UK BMS and energy management business based in Sheffield and focused on Yorkshire, Midlands and London.

With the transaction, learnd SE is expanding its business activities in line with its strategy to selectively pursue M&A opportunities and partnerships to consolidate the building management systems market and expand its operations geographically, with the aim of becoming the leading energy management provider in Europe.

The consideration consists of a low-single-digit million-pound sterling amount plus an aggregate of 310,465 treasury shares in learnd SE to be transferred and delivered to the sellers of the Target by learnd SE.  LinkedIn reports 51 employees.

Memoori View

learnd’s mission to become the leading energy management provider throughout Europe is at a very early stage, given that almost all their business originates in the UK, but they are making good progress. Ambitious estimates of revenue growth stated as part of their SPAC listing, have not been realized so far. learnd faces strong competition for high-margin service business from other independent systems integrators such as Nordomatic.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.