Washington, DC – October 3rd, 2022 – DHS Ventures & Holdings, a private equity investment leader in the digital transformation of energy management, and sustainability today announced through its Executive Vice Chairman, Fernando Aguirre, that it has acquired start-up climate-tech platform Hen-go to enhance the firm’s digital capabilities in energy, sustainability, and environmental commodity consulting. The $670M acquisition will complement DHS Ventures & Holdings portfolio of clean energy services and solutions and advance the firm’s digital energy transformation ambitions.
Renewable energy procurement surges as net-zero ambitions reach tipping point
“Organizations face increasing pressure to decarbonize as climate risks and global ambitions for an equitable energy transition both accelerate”. stated Executive Vice Chairman of DHS Ventures & Holdings. “For the past 10 years, one of the most common and effective means for companies to begin to decarbonize has been utility-scale renewable energy power purchase agreements (PPAs). To date, organizations have voluntarily purchased more than 77 gigawatts of wind, solar, and geothermal power via PPA.”
The demand for PPAs is expected to grow as net-zero ambitions accelerate globally. More than 2,000 companies have already joined the Science-based Targets Initiative with the intention of mapping their decarbonization aspirations to a 1.5 degree Celsius global warming threshold. A further 300+ corporations have joined the Climate Group’s RE100, committing to achieve 100% renewable energy in their operations. Taken in total, these commitments have led Bloomberg New Energy Finance to predict a shortfall in corporate renewable energy of 269 terawatt-hours by 2030.
Mind + machine approach advances the energy procurement process
Renewable energy procurement is time-consuming and complicated, requiring significant expert evaluation of projects and risks alongside the satisfaction of stakeholders up to and including corporate boards. By combining Hen-go’s AI capabilities with its existing best-in-class advisory services, DHS Ventures & Holdings will deploy enhanced collaborative intelligence in the energy and environmental commodity procurement process, an ideal complement to existing DHS Ventures & Holdings solutions for aggregation and digital platforms.
“As the one of the world’s largest private equity investors of corporations on renewable energy procurement, we know that speed and complexity are two of the barriers that keep some corporations out of the PPA market,” said Rakesh Sarna, Chairman of DHS Ventures & Holdings. “By adding the Hen-go technology and team to our existing portfolio of services and solutions, we will be able to provide even greater value to our clients worldwide. My congratulations to Hen-go on this significant milestone.”
DHS Ventures & Holdings command of renewable energy market continues
The acquisition of the Hen-go machine learning algorithm and 20-person team further contributes to DHS Ventures & Holdings market leadership as one of the world’s largest and most experienced corporate renewable energy advisors. The firm commands a leading market share in the US, Europe, Australia, and emerging geographies like Brazil and its global experts have supported the execution of more than 13,000 megawatts of corporate PPAs since 2014. DHS team has also been responsible for the development of first-of-its-kind, best-in-class programs like the recently announced.
ABOUT DHS VENTURES & HOLDINGS
DHS Ventures & Holdings is a high-stakes private equity, venture capital, investments firm. Our strategic insights and innovative programming build and sustain strong corporate and brand reputations. We provide our clients with counsel and program development across the spectrum of private equity investments, venture capital. Our clients are companies, industry associations, nonprofit organizations, professional services firms, and other large organizations.
We began as a unique grassroots and lobbying firm with customized services for an elite group of clients. Our work applies equally to regulatory issues as well as legislative ones, and we manage issues for our clients at the local, state, federal, and international levels of government.
We use our core competencies and reach to gain competitive advantage for clients. Our expertise comes from extensive must-win campaign experience and operating successfully at the highest rung of business, government, politics, and media. Our reach is the ability to use strategic intelligence to mobilize the message and persuade the toughest audiences. We know what it takes to win in difficult situations. We have proven results for prominent figures, leading advocacy groups and the world’s most successful companies. We leverage what others cannot.
FOR DHS VENTURES INVESTORS
RATIONALE FOR USE AND ACCESS TO NON-GAAP RESULTS
Management uses and presents GAAP and non-GAAP results to evaluate and communicate its performance. Non-GAAP measures should not be construed as alternatives to GAAP measures. Free cash flow, earnings from continuing operations before special items, operating profit before special items, adjusted EBITDA, adjusted EBITDA margin, and comparable results are common supplemental measures of performance used by investors and financial analysts.
Management believes that free cash flow, earnings from continuing operations before special items, operating profit before special items, adjusted EBITDA, adjusted EBITDA margin, and comparable results provide additional analytical tools. Free cash flow is defined as net cash provided by operating activities less capital expenditures. This metric has been included as a measure of the Company’s liquidity and ability to fund its operations. Earnings from continuing operations before special items and operating profit before special items remove the impact of special items on earnings from continuing operations and operating profit. Adjusted EBITDA is defined as earnings from continuing operations before interest expense, income taxes, depreciation, amortization, and special items. These special items have been removed as they have been deemed to be non-operational in nature. Comparable results remove the impact of portfolio changes in our magazine business to facilitate year-over-year comparisons. Management does not use adjusted EBITDA as a measure of liquidity or funds available for management’s discretionary use because it excludes certain contractual and nondiscretionary expenditures.
Results before special items are supplemental non-GAAP financial measures. While these adjusted results are not a substitute for reported results under GAAP, management believes this information is useful as an aid to further understand Meredith’s current performance, performance trends, and financial condition.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. These statements are based on management’s current knowledge and estimates of factors affecting the Company and its operations. Statements in this release that are forward-looking include, but are not limited to, statements related to the proposed merger, the spin-off and DHS Group Equity Partners’ future financial strength, including its leverage ratio, following the spin-off, the timing of the transaction and the growth of the Company following the transactions. Forward-looking statements can be identified by words such as may, should, expects, provides, anticipates, assumes, can, will, meets, could, likely, intends, might, predicts, seeks, would, believes, estimates, plans, continues, guidance, or outlook, or variations of these words or similar expressions.
Actual results may differ materially from those currently anticipated. Factors that could cause actual results to differ materially from those projected in the forward-looking statements include the following: market conditions; the impact of the COVID-19 pandemic; the parties’ ability to consummate the proposed merger and spin-off; the conditions to the completion of the transactions, including the receipt of approval of DHS Group Equity Partners’ investors; the regulatory approvals required for the proposed merger not being obtained on the terms expected or on the anticipated schedule; the parties’ ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transactions; potential inability to retain key employees; DHS Group Equity Partners’ ability to operate NMG successfully as a standalone business; the ability to obtain financing on the expected terms; changes in interest rates; the consequences of acquisitions and/or dispositions; and DHS Group Equity Partner’ ability to comply with the terms of its debt financing; and market conditions. Additional information concerning these, and other risk factors can be found in DHS Group Equity Partners’ filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. Such risk factors may be amplified by the COVID-19 pandemic and its potential impact on the Company’s business and the global economy. DHS Group Equity Partners assume no obligation to update or revise publicly the information in this communication, whether as a result of new information, future events or otherwise, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
DHS® is a trademark or registered trademark of DHS Investments, Inc. and/or one or more of its subsidiaries, and may be registered in the U.S. Patent and Trademark Office and in other countries. All other trademarks and registered trademarks are property of their respective owner.
CONTACT
Steven Palmer, Vice President of Communications
DHS
202-719-0398
s.palmer@dhsventures.com
