OVO Energy Ltd entered into an agreement to acquire SSE Energy Services Business from SSE plc (LSE:SSE) for an enterprise value of £500 million on September 13, 2019. Pursuant to the terms of agreement, the consideration includes £400 million in cash and £100 million in loan notes. The cash consideration is deducted by £59 million to reflect the debt like items in respect of the Capacity Market mechanism. The £100 million loan note will be issued by a member company of OVO group, parent of OVO Energy. The loan note is due in 2029, unless prepaid earlier, with an annual interest rate of 13.25% payable in kind. SSE has submitted Renewable Obligation Certificates in August 2019 in satisfaction of SSE Energy Services' Renewables Obligation for the obligation period ended 31 March 2019, the last full financial year of SSE ownership. OVO will be liable for all Renewable Obligations accruing thereafter. For year ended March 31, 2019, SSE Energy Services reported adjusted operating profit of £89.6 million, pre-tax profit of £35.3 million, gross assets of £1.85 billion and net assets of £764.2 million. Post-completion, all 8,000 employees of SSE Energy Services will join OVO and SSE will continue to provide certain services to OVO under a Transitional Services Agreement. SSE brand will be operated by OVO under license for a period, allowing time for a phased and carefully managed migration and continued high standards of customer service. The transaction is subject to satisfaction of certain conditions including approval from Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA) and is expected to complete in late 2019 or early 2020. The cash proceeds will be used by SSE plc to reduce net debt. As of December 10, 2019, transaction has been approved by Competition and Markets Authority. Transaction is expected to complete in mid-January 2020. Credit Suisse and Morgan Stanley acted as joint financial advisors and corporate brokers for SSE. Barclays Capital PLC and Greentech Capital Advisors Securities, LLC acted as financial advisors to OVO Energy Ltd. Richard Smith, Christian Bone, Alex Dustan , David Hughes, Simon Tysoe, Chris Koay, Oliver Koo, Lewis Rowley, Stephen Elhabbal, Gabrielle Ohlsen, Riva Bhalla, Caroline Phillips, Matthew Tobin, Chris Armstrong, Robert Withycombe-Taperell, Bie Cookey, Isabel Taylor, Jonathan Slade, Andrew Gilbert, Rob Sumroy, Richard Todd, Oliver Moir, Oliver Howley, Bronwen Hutchison, Harry Vanner, Charles MacRae, Gareth Miles, Ed Milliner, Victoria Hine, Daniel Schaffer, Charles Cameron, Padraig Cronin Chris Sharpe, David Rintoul, Nick Bonsall, Chris Hurn, Samantha Brady and Paul Roberton of Slaughter and May acted as legal advisor for OVO Energy. Addleshaw Goddard LLP acted as legal advisor for SSE.