IFM’s PE unit splashes $80m on software firm Tally Group

afr.com:

IFM Investors’ private equity unit has invested $80 million into software business Tally Group, which specialises in administering and billing for customers who use the grid for drawing and sending power.

The transaction comprises a $45 million investment that can be drawn immediately, while $35 million is reserved for future growth plans, Adrian Kerley, an executive director at IFM told The Australian Financial Review.

EnergyAustralia is one of Tally Group’s biggest clients. Bloomberg

IFM’s interest in the business comes as energy consumption shifts towards sources such as electric vehicles and solar panels. The software needed to service renewable power has also evolved to suit an energy grid focused on decarbonisation.

“The way energy networks operate is changing with increased decentralisation and decarbonisation,” Mr Kerley said. “To keep up with these changes, as electricity increasingly flows two ways between the grid and homes, a massive focus to build software that can enable the decentralised modern grid is under way.”

Tally Group builds software around automated billing and customer service for utilities. The software-as-a-service product counts more than 110 companies as clients in Australia, New Zealand, Japan, the Middle East, India and the US, including EnergyAustralia and New Zealand’s Genesis Energy, among others.

In exchange for the $80 million investment, IFM will pick up about 40 per cent to 50 per cent of the equity in Tally Group alongside existing private equity backers Silver Tree and Pioneer Capital, both of which remain investors.

IFM’s investment will not increase debt at Tally Group, which stands at about $30 million. Revenue was estimated at more than $40 million, valuing the company at about