Enersize enters important cooperation agreement with Caverion Sverige AB
This is a translation of a previously released news. Enersize Oyj (“Enersize”) today announces that the company has entered into a two-year cooperation agreement with Caverion Sverige AB (“Caverion”) regarding the sale, distribution and installation of Enersize's complete offering of efficiency and monitoring software for industrial compressed air systems. The agreement is a breakthrough for Enersize's new license-based business model and the first comprehensive agreement with a larger facility management company. The cooperation agreement is valid until 2020-12-31 and can thereafter be extended in contract periods of two (2) years at a time. Enersize’s objective is that the agreement in time shall generate 50-150 new customer contacts per year in Sweden, which represents an average value of SEK 100,000 per contract and three-year period.
Enersize's new business model means that sales, installation and execution of monitoring and enhancement services will mainly be managed by independent distributors, which comprise major players in industrial maintenance and service, so-called "Industrial Maintenance" or "Facility Management" companies, that have already established relations with industrial customers. Enersize is responsible for the provision of web-based software products against monthly license fees and is responsible for technical support and access to specialist knowledge. In this way, sales can be scaled up quickly and with low capital requirements.
Enersize's SaaS software enables monitoring and streamlining of compressed air systems through IoT measurement systems, computerized analysis and streamlining tools, as well as leakage detection and repair software. Enersize's full service offering is world-leading and the software is already used in approx. 20 countries. The leakage repair software is marketed under the brand LEAQS and the monitoring and efficiency systems are marketed under the name Enersize Q+.
The cooperation agreement means that Caverion will independently sell Enersize solutions and perform efficiency work with the help of Enersize’s software. Caverion will also act as service and installation partner in Sweden for Enersize's direct sales.
Enersize's objective is that a cooperation agreement with a partner corresponding to Caverion's size in a fully established and run-in cooperation should generate up to approx. 50-150 new customer contracts on an annual basis. For players in larger markets than the comparatively smaller Swedish market, the number of new customer contracts is expected to increase proportionally to the size of the players. As Enersize's business model is based on monthly license costs, affiliated customers will continue to generate recurring revenue. In the future, Enersize will focus on signing cooperation agreements for sales, distribution and installation with several major European companies with a profile corresponding to Caverion. The value of individual customer contracts may vary greatly depending on the size of the factory and the scope of the delivery but is estimated to amount to approx. SEK 100,000 for the initial contract period of three years for each individual customer.
CEO Anders Sjögren comments:
“It is very gratifying to be able to present this breakthrough for our new business model with a full-service collaboration with a well-known market player such as Caverion. The negotiations with Caverion have been going on for a long time because this agreement is the first of its kind. I know that our shareholders have long waited for us to show proof of our new business model and I hope that this is a first of more such partner agreements because they are necessary for our new license based business model."
Daniel Winkler, Director of Marketing and Sales, comments:
“The agreement with Caverion is a clear example of how we can quickly and cost-effectively cover large geographical areas with our new business model and the right partners. The next step for us is to repeat this with additional market actors in order to scale up sales and revenue.”
Joakim Attoff, Sales Representative, Caverion Sverige AB, comments:
“Enersize’s full-service offer is attractive and covers a market need. Further, it also fits in well in our existing service offering. Enersize’s services also have a strong efficiency and environmental focus, which is something our customers are asking for.”
About Caverion Group
Caverion designs, builds, operates and maintains intelligent and energy-efficient solutions for buildings, industries and infrastructures in Northern, Central and Eastern Europe.
The revenue for 2018 was approximately EUR 2.2 billion. The company is among Europe’s leading providers of technical solutions for buildings and industries. Caverion has two business units: Projects and Services.
Caverion has about 15,000 employees in 10 countries. Head office is located in Vantaa, Finland. The Caverion share (CAV1V) is listed on the Helsinki Stock Exchange (Nasdaq Helsinki).
For more information about Caverion Sweden: www.caverion.se.
Telephone: +46(0)40-615 14 10
For more information about Enersize, please contact:
Anders Sjögren, CEO
Brief information about Enersize
With its proprietary patent-pending automated software for leakage management, data collection and analysis, Enersize can provide 10-50% energy savings in industrial compressed air systems. Through the recently acquired LEAQS system, the company has access to more than 9000 leakage management projects, and the associated more than 4000 customers worldwide. The combination of the company’s software services can increase the customer’s savings in running projects, while generating direct license and project revenue. 90% of the manufacturing industry uses compressed air, which constitutes about 5% of the world's total electricity consumption. Among Enersize's existing customers are one of the world's largest manufacturers of flat screens and well-known car manufacturers and steel mills. The company is headquartered in Helsinki, have a sales office in Gothenburg and a development office in Lund. The company is listed on Nasdaq Stockholm First North under the ticker: ENERS. www.enersize.com