Igneo Buys Macquarie's OnStream Smart Meter Business

Igneo Infrastructure Partners has agreed to acquire Macquarie Specialised and Asset Finance's smart meter platform, OnStream, in a significant transaction set to reshape the UK's energy infrastructure sector. This deal, poised for completion before the end of March 2026, positions OnStream as a dominant force in the smart metering asset provision market, boasting a substantial operational portfolio and a robust pipeline.

The acquisition encompasses over seven million advanced smart meters, predominantly SMETS2 devices, deployed across both the United Kingdom and Germany. This extensive network includes approximately 2.7 million meters previously acquired by Macquarie from Spanish energy firm Iberdrola in 2025, alongside meters from Macquarie's own metering operations established in 2003. The strategic integration of these assets under Igneo's management is expected to unlock significant operational synergies and enhance service delivery.

OnStream currently stands as the second-largest smart meter asset provider in the UK, managing an installed base of roughly seven million devices. Furthermore, the company has secured a contracted pipeline for an additional three million meters, underscoring its strong growth trajectory. Beyond its core UK operations, OnStream also manages approximately 60,000 meters in Germany, with ambitious expansion plans fueled by existing and new customer agreements.

The services provided by OnStream are critical to the energy ecosystem, offering smart meter installation and financing solutions for energy suppliers in Great Britain and meter point operators in Germany. The transaction explicitly includes the value of this contracted orderbook, providing Igneo with immediate revenue streams and a clear path for future development. This move aligns with the broader industry trend of consolidation and strategic asset acquisition within the digital infrastructure space.

Macquarie has demonstrated a long-term commitment to advancing smart metering infrastructure, having invested over GBP 2 billion in Great Britain over the past two decades. Following this divestiture, Macquarie will retain approximately six million earlier-generation SMETS1 meters, indicating a strategic refocusing of its asset portfolio. Julian Liddy, Senior Managing Director at Macquarie Specialised and Asset Finance, highlighted Igneo's proven expertise in managing energy infrastructure as a key factor in ensuring OnStream's continued success and expansion.

Igneo Infrastructure Partners, a seasoned investor in European and Global Infrastructure Strategies, is well-equipped to steer OnStream through its next phase of growth. The acquisition is anticipated to contribute positively to Macquarie's FY26 financial results, marking a successful exit from a significant segment of its smart metering business. This transaction underscores the increasing investor appetite for essential utility infrastructure assets with long-term contracted revenues.