Orbital Energy Group Announces Sale of Orbital Gas Systems Ltd., to Strategic Competitor, nZero Group
Orbital Energy Group, Inc. (NASDAQ: OEG) has entered into a share purchase agreement to sell its UK gas business, Orbital Gas Systems Ltd, to nZero Group. This move allows nZero to take over Orbital's UK operations, including the GasPT Technology. Orbital will retain licensing rights for certain GasPT projects and license its proprietary VE Technology for European and Asian markets. The deal aligns with Orbital's strategy to diversify and capitalize on the growing demand in electric power and renewable industries, according to CEO Jim O'Neil.
- Strategic exit from UK gas business allows Orbital to focus on core sectors.
- Potential royalty and licensing revenue retention from nZero Group.
- Sale of Orbital-UK may lead to decreased revenue streams from the gas sector.
- Dependence on licensing agreements with nZero Group for future revenues.
HOUSTON, May 11, 2022 /PRNewswire/ -- Orbital Energy Group, Inc. (NASDAQ: OEG) ("Orbital") and nZero Group Limited ("nZero Group") today announced that they have entered into a share purchase agreement (the "Agreement") under which Orbital will sell its UK gas business, Orbital Gas Systems Ltd ("Orbital-UK") to nZero Group.
Effective immediately, nZero Group will assume operations of Orbital's UK and European business, including sales and distribution of the GasPT Technology. Orbital retains potential licensing and royalty rights to certain GasPT projects. Excluded from the Agreement is Orbital's proprietary VE Technology, which will be licensed to nZero Group for European and Asian distribution.
"This transaction is yet another step in Orbital Energy Group's transformation to a diversified infrastructure services company as we move forward with an aggressive and disciplined strategy to tap into the increasing secular demand trends in the electric power, telecommunications, and renewable industries," said Jim O'Neil, Vice Chairman and CEO of Orbital. "I want to thank the employees of Orbital Gas UK for their past service to OEG and congratulate nZero Group for completing this compelling, strategic transaction."
Matt Allen, Managing Director of nZero Group stated, "This deal represents a significant step forward in our strategy to become a key contributor in the UK net zero energy transition by bringing under common ownership two of the UK's leading measurement and control partners across the natural gas, low carbon hydrogen, petrochemical, and waste to energy sectors. Common ownership of Orbital-UK and Thyson Technology Limited, an nZero Group subsidiary company, will invigorate the exceptional talent and manufacturing capability of both businesses creating an environment that promotes the sharing of knowledge and best practices leading to improved performance and a sustainable future together for the long-term benefit of our customers, partners, and loyal staff. I would like to thank OEG for this opportunity and the local Orbital-UK management for their support."
About Orbital Energy Group
Orbital Energy Group, Inc. (Nasdaq: OEG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in the electric power, telecommunications, and renewable industries.
Orbital Energy Group is dedicated to maximizing shareholder value, by striving to exceed our customers' expectations, building a diverse workforce, and making a positive difference in the lives of our employees and the communities in which we operate, and contributing to reducing the carbon footprint through the services we provide.
For more information please visit: www.orbitalenergygroup.com
About nZero Group Limited
The nZero Group mission is to Innovate our energy system to sustain our way of life whilst protecting our planet by solving complex problems of strategic importance for energy producers, transporters, and industrial users through the integration of best of breed technology.
nZero Group is the parent company of Thyson Technology Limited ("Thyson") whose principal activity is the design, build, commissioning, and maintenance of equipment focused on the measurement and control of gas and liquid with a successful track record in the natural gas, petrochemical and waste to energy sectors and the delivery of innovative solutions to decarbonize energy.
For more information please visit: www.nzerogroup.com
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the expected use of proceeds. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the Company's filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2020, its periodic reports on Form 10-Q, and its Current Reports on Form 8-K filed in 2020 and 2021, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. Orbital undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations:
Three Part Advisors
John Beisler or Steven Hooser
817-310-8776
investors@orbitalenergygroup.com
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SOURCE Orbital Energy Group, Inc.
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