Correla

Business Description

Correla is an innovative technology and data services business that aims to help to create a less complex and more sustainable energy sector.

Background

Our acquisition of Correla follows the divestment of the subsidiary by the Gas Industry’s Central Data Service provider Xoserve. The divestment, a restructure of Xoserve’s existing operations undertaken to best serve the changing needs of the gas industry and its stakeholders, sees Xoserve become a specialised contract management and assurance company.

Correla was created to fuel innovation in the centre of the gas market and the wider energy sector. It will continue to deliver services back to Xoserve through a commercial contract (Data Services Contract Plus – DSC+), embracing existing commitments and remaining focussed on delivering outstanding customer service and operational effectiveness.

The divestment and our subsequent investment allows Correla to deliver new products and services, through investment in its data platforms and expansion into alternative energy markets through organic growth – alongside the potential for strategic acquisitions to accelerate services expansion.

Jon Pickering and Andrew Skinner led the investment, supported by James Marshall, Kevin O’Loughlin and George Potts. Jon and Andrew will join the Correla board, alongside Ian Kelly as Non-Executive Chair. Ian, Chair of NorthEdge portfolio company Cloud Technology Solutions, brings with him a wealth of private equity experience, as well as significant experience in the energy sector – most recently alongside NorthEdge at Utiligroup.

Strategy

NorthEdge will work alongside Correla Chief Executive Officer, Sian Jones, and her team, to deliver the business’ long-term vision of reducing industry complexity for the benefit of end consumers, which is an essential step on the industry-wide pathway to net zero.

Correla is the only technology service provider with end-to-end visibility of the UK’s gas network, and enables access to this data through a real-time, visual and interactive analytics dashboard on its Data Discovery Platform (DDP) – enabling customers to monitor the impact of Carbon reduction programmes and drive efficient energy usage.

With our support, Correla is well-placed to support the UK’s emerging Hydrogen economy through working with stakeholders across the UK gas network, helping them to decarbonise the UK’s gas infrastructure.

Commenting on the investment, Sian Jones said: “The UK has an incredible task ahead to meet its decarbonisation targets and we’re committed to supporting customers every step of the way. NorthEdge’s acquisition has come at a critical time for us as we look to develop new products, services and technologies that will remove complexity from the market and unlock operating models that better support the UK’s energy transition.

“NorthEdge’s values and objectives align with the sustainability needs and requirements of the team at Correla and the wider UK energy market. This, alongside their commitment to Environmental, Social and Corporate Governance (ESG), as well as their experience of backing businesses in the energy and utilities software and services industry, proved to us that they were the right partner to support us on this exciting journey.”

Andrew Skinner, Director and Head of Midlands at NorthEdge, said: “Correla is already an integral service partner to stakeholders in the UK gas network, and we’re excited to support the team to enhance that performance.

“We have been investing in the energy and utilities sector for more than 10 years, and therefore understand first-hand how data has transformed the market and the role it will play in the transition to net zero. We believe that our experience of the sector, alongside our regional approach and investment style means that we are uniquely placed to meet the requirements of both Correla and Xoserve.

“We are extremely pleased to have Correla join our growing portfolio and look forward to working with Sian and the rest of the Correla management team to grow the business together – investing in people, products and innovation.”

Sector TMT
Location Solihull
Deal Type MBO
Investment Date March 2021
Employees 450
NorthEdge Contacts Jon Pickering
Andrew Skinner

NorthEdge’s values and objectives align with the sustainability needs and requirements of the team at Correla and the wider UK energy market.

Sian Jones, CEO