QIC confirms completion of acquisition for 50% interest in Vector Metering

Vector (NZX:VCT) and QIC Private Capital Pty Limited (QIC) have today financially closed the sale of a 50% interest in Vector’s New Zealand and Australian metering business (Vector Metering) to investment vehicles managed and advised by QIC.

The sale marks a significant milestone for Vector, a company at the forefront of New Zealand’s energy transition, and supercharges the future of Vector Metering, which is backed by industry-leading data technology.

With its leading position in New Zealand and the joint venture partnership with QIC, a significant opportunity now exists to further cement Vector Metering’s position as a key player in the Australian energy sector.

Vector Group Chief Executive Simon Mackenzie said: “Vector started the metering business 14 years ago because we saw an opportunity to do something important for the future of the energy sector. We’ve built the business up from scratch to today where it has 2.3 million meters owned or managed in Australia and New Zealand.

“Vector has a track record of collaborating with innovative global companies such as Amazon Web Services (AWS), and QIC is another example of this calibre. This process has shown that the metering business is seen as highly valuable by major investors. The metering sector is a very competitive industry, and this transaction is a great success story for Vector Metering and Vector. I’d like to thank the many people over the years for their efforts in getting us to this stage.

“With the backing of both Vector and our joint venture partner, QIC, Vector Metering is well placed to accelerate growth opportunities and continue to play a key role in the transition of the energy industry.”

Ross Israel, Head of QIC Global Infrastructure said he was excited about the new partnership.

"This deal is another strong commitment by QIC Infrastructure to its sector centric and thematic based investment strategy, of which the energy transition is a core focus, one where we have now deployed A$5 billion over the past 5 years. Smart meters have a critical role to play in the decarbonisation of electricity supply in both Australia and New Zealand.” Mr Israel said.

Patrick Mulholland, Senior Principal, who led QIC Infrastructure’s acquisition team, said both Vector and QIC bring complementary skills to the Vector Metering business.

“QIC’s deep industry experience and extensive relationships particularly across Australia, will help accelerate the growth of the business financially and strategically, and further enhance Vector Metering as it meets the needs of its customers. We are excited with Vector about the new executives joining the management team and look forward to supporting them in growing the business,” Mr Mulholland said.

Vector Metering key appointments

Neil Williams has been appointed as CEO, having previously led the business as COO.

Over the past three decades Neil has had a range of executive roles and experience in the energy sector, including the development of the New Zealand Electricity Market, trading and risk management, advanced metering development, energy retailing and market regulation.

Additionally, after an extensive search of top industry talent, conducted jointly by Vector and QIC, the business is very pleased to have made several key executive appointments. They include:

• Jane Mills – Executive GM, Australia: Jane has spent more than 25 years in a variety of senior roles in the energy sector delivering excellent end-to-end customer experiences.
• Virginia Suttell – Chief Financial Officer: Virginia has a diverse background in corporate finance, business strategy, and operational management across a variety of industries, including oil and gas and mineral exploration. 
• Lynne Sutton – General Counsel & Company Secretary: Lynne is a commercial lawyer with a top-tier background and was admitted to both the Supreme Court of Victoria and the High Court of Australia in 2008. 
• Michael Hendry – Chief Digital Officer: Michael’s proven track record in delivering technology transformation will help Vector Metering continue to provide innovative and efficient solutions that power our customers’ businesses.

Key role in decarbonisation

Smart meters (for both electricity and gas) that connect to data networks are a vital part of the energy transition.  

Vector Metering uses an industry-leading data and analytics platform, Diverge, jointly developed by Vector Technology Solutions (a wholly owned subsidiary of Vector) as part of a strategic alliance with AWS. 

The platform securely processes data from residential and commercial smart meters, which energy retailers can use to support billing, and develop new products and services for customers that support decarbonisation and cleaner energy options.

This can help accelerate the uptake of renewable energy, manage the electricity grid more efficiently, and give consumers more awareness and choice about their energy usage.

The sale marks a significant milestone for Vector Metering within the rapidly evolving energy industry, with an exciting path forward backed by both Vector and QIC.  

Note – Vector Metering will be changing its name later this year.