Ovo Energy acquires brand from founder for £150m

Ovo Energy has completed a £150 million deal to acquire its brand from founder Stephen Fitzpatrick, a move aimed at simplifying its corporate structure as it prepares for potential fundraising or sale. The transaction involves the issuance of preference shares to Fitzpatrick, who will also step down from his role on the board of the company's holding entity. This change eliminates the multimillion-pound annual brand licensing fees previously paid to Fitzpatrick's company, allowing Ovo to streamline operations as it seeks to expand in the energy market, including electric vehicle charging. The reorganization follows scrutiny over Ovo's financial practices and comes after significant investments from other shareholders. With around four million customers, Ovo is positioning itself to enhance its decarbonization efforts under CEO David Buttress. The company's strategic review, led by Rothschild, indicates further financial restructuring may be on the horizon.