TPG Rise Climate, a dedicated climate investing strategy of TPG’s global impact investing platform, and GIC signed a deal to acquire Techem Group. The company will be acquired from its previous majority owner Partners Group (acting on behalf of its clients and co-investors CDPQ and Ontario Teachers’ Pension Plan).
Launched in 1952, Techem has built one of the largest digital energy services platforms in the industry. And Techem is active in 18 countries and services more than 13 million dwellings, with over 62 million digital measuring devices on its platform.
As a dependable long-term partner, Techem supports the property sector and private landlords in improving their energy efficiency, as to reduce energy consumption, costs, and CO2 emissions in a low-investment and non-invasive manner. Techem’s services help to advance the long-term decarbonisation of the real estate sector, which still drives approximately 40% of global CO2 emissions.
Due to the strong development over the past years, Techem has exceeded the one-billion-euro revenue mark – with new digital services and broader decarbonisation services presenting future growth opportunities. And Techem will build on this foundation with its new partners TPG and GIC and further expand its “One Digital Platform,” leveraging the power of digitization to unlock significant energy efficiency potential in the building sector, optimize operational processes, and increase the living comfort of residents.
Techem will be acquired for a total consideration of about €6.7 billion. Subject to customary conditions and regulatory approvals, the deal is expected to close in the first half of 2025. The purchase price will be paid in two installments, one at close and the remainder in July 2027.
TPG Rise Climate, one of the world’s largest private equity funds dedicated to investing in global climate solutions, invests in companies that are driving meaningful decarbonization at scale. Techem represents the largest transaction for the fund to date. GIC is making a significant minority investment.
KEY QUOTES:
“With TPG and GIC, we are gaining strong new partners with the digitization and platform expertise needed to help us make significant progress in implementing our corporate strategy. Together, we want to further expand and advance our position as a leading platform for digitizing and decarbonizing the building sector across Europe and beyond. Techem has become a leading provider of a wide range of digital solutions with strong growth and a powerful, agile organizational setup. We are very grateful to Partners Group and its co-investors CDPQ and Ontario Teachers’ for the trustful exchange and collaboration on the development of the company over the past years and look forward to building on our success with TPG and GIC.”
Matthias Hartmann, CEO of Techem
“Techem’s technology, transparent consumption statistics, and streamlined solutions for tenants, managers, and asset owners alike are essential solutions for lowering costs and improving the environmental impact of real estate assets across Europe. There is a tremendous opportunity to reduce energy consumption in built environments by enhancing efficiency and better-managing overall demand. We’re looking forward to supporting the Techem team in leading and accelerating real estate emissions reductions at scale.”
- Ed Beckley, a London-based Managing Partner of TPG Rise Climate
“Techem is a well-established energy service provider with a proven track record. Sub-metering is becoming increasingly prevalent in Continental Europe as consumers and regulators focus on energy efficiency. We look forward to supporting the company’s continued growth, alongside TPG and management.”
- Ang Eng Seng, Chief Investment Officer, Infrastructure at GIC
