DCC Energy (LSE:DCC) has agreed to sell Nexora, its technology division, to investment subsidiaries managed by One Equity Partners, valuing the business at an enterprise value of $725 million on a cash-free, debt-free basis.
The disposal is conditional on customary regulatory approvals and is expected to complete on or after 1 March 2027.
The sale matters because its proceeds feed directly into the contingent payment attached to DCC Energy's own takeover by Dragon Bidco, the vehicle backed by Energy Capital Partners and Kohlberg Kravis Roberts & Co, agreed in July.
Under that deal's terms, DCC Energy shareholders receive 6,525p in cash per share plus up to a further 125p per share if Nexora's net sale proceeds clear $800 million before 31 July 2027; proceeds between $650 million and $800 million produce a sliding, linearly calculated top-up.
Assuming the Nexora sale completes on 1 March 2027 as planned and no value leaks to any party outside the DCC Energy group before then, the company now expects net proceeds of $701 million, translating into an additional consideration estimate of 42p per share, well short of the maximum.
DCC Energy stressed these figures are estimates only; the final additional consideration will be calculated under the transaction agreement once the Nexora sale actually completes, with a further announcement to follow.
Nexora has been part of DCC Energy's technology division, whose sale process has been running alongside the broader group simplification that has already seen the company return £700 million to shareholders through a buyback and tender offer and commit to an £830 million operating profit ambition by 2030.
"Nexora has been an important part of the DCC Group for many years and has built a strong market position through the expertise and commitment of its people," said Donal Murphy, chief executive of DCC Energy.
He added that the transaction "will deliver additional value for DCC Energy shareholders" and that One Equity Partners is "well placed to support Nexora's continued growth, investment and long-term development."
DCC Energy shareholders voted on 18 September to approve the scheme underpinning the Dragon Bidco acquisition, which was recommended at a base consideration of 6,525p per share, a 24% premium to the undisturbed closing price of 5,380p.
The Nexora sale and its proceeds estimate arrive as that scheme moves toward completion, still targeted for the first quarter of 2027.