Xoserve Board Message - Investor and new operating model update

Xoserve has now completed the restructure of its existing operations and has secured private equity firm, NorthEdge as an investor to wholly acquire its subsidiary, Correla.

Published on 06 Apr 2021

Xoserve the gas industry’s Central Data Service Provider (CDSP), has now completed the restructure of its existing operations and has secured an investor to wholly acquire its subsidiary Correla.

Background

In 2017 Xoserve embarked on a new strategy, motivated by the realisation that the energy market is facing unprecedented transformation and we need to change and innovate to meet the future needs of customers. In pursuit of this strategy Xoserve separated into two companies on the 1st March 2021, Xoserve and a new subsidiary called Correla.

Xoserve is a specialised contract management and assurance company, retaining its role as the CDSP and accountability for the Data Services Contract (DSC) and industry procurement. Stephanie Ward was appointed on 1st March 2021 to lead the restructured Xoserve organisation as its new Chief Executive Officer (CEO). Alongside her skills and wide experience, Stephanie is an expert in contract management having spent much of her career with major outsource providers Cognizant and Capgemini. Xoserve now consists of Commercial, Finance, Contract Management and assurance functions and key industry experts. In addition, the Credit Risk, Neutrality and Customer Change teams will remain in Xoserve. Xoserve will lead industry engagement for regulatory and strategic change requirements, industry procurements and will lead the ongoing business planning process.

Correla was created to be an independently owned business, backed by private investment to fuel innovation in the centre of the gas market and beyond. Correla delivers services back to Xoserve through a commercial contract (DSC+). This contract embraces existing commitments, including the passion and drive to deliver outstanding customer service, whilst enabling the flexibility to deliver new products and services. With a continued focus on customer centricity, Correla engages directly with customers to deliver CDSP services on behalf of Xoserve. Sian Jones, who held the position of CEO at Xoserve for the past four years, moved to take up the position of CEO at Correla on 1st March 2021. At the same time, around 90% of employees transferred from Xoserve to Correla.

Investor announcement

Following a competitive process and period of due diligence, private equity firm NorthEdge has been selected as a suitable investor for Correla, and Xoserve has now completed the sale of its 100% shareholding in Correla.    

NorthEdge is a leading independent mid-market private equity firm based in the North and Midlands, focussed on backing high quality management teams and growing businesses with national and international reach.

A key factor for the Xoserve Board in its selection process was for the values and objectives of the chosen investor to be compatible with the sustainability needs and requirements of the UK energy market, its customers and consumers. NorthEdge also recognises and embraces the customer experience journey that we are investing in and the progress we have made over the last 12 months. They are completely aligned to the improvements we have set out in the Business Plan for 2021 and trust in our ability to deliver these and our future aspirations.

Andrew Skinner, Director and Head of the Midlands at NorthEdge, said: “Correla is already an integral service partner to stakeholders in the UK gas network, and we’re excited to support the team to enhance that performance. We have been investing in the energy and utilities sector for more than 10 years, and therefore understand first-hand how data has transformed the market and the role it will play in the transition to net zero. We believe that our experience of the sector, alongside our regional approach and investment style means that we are uniquely placed to meet the requirements of both Correla and Xoserve.

“We are extremely pleased to have Correla join our growing portfolio and look forward to working with Sian and the rest of the Correla management team to grow the business together - investing in people, products and innovation.”

Clare Spottiswoode, Xoserve Chairman said, “I am delighted that we have secured an investor who has throughout the sale process, proven their commitment to the success of our customers and the challenges facing the energy sector. I am confident that our objectives are well aligned, and I look forward to working in partnership with NorthEdge to deliver our strategy”.

Next steps

You can find out more about the restructured Xoserve organisation here.  You can also read NorthEdge's website news article about the investment.

If you have any questions that can’t be answered by our Frequently Asked Questions (FAQ) document, please email them to mercury@xoserve.com.

The Xoserve Board would again like to take this opportunity to thank all customers who have engaged in the process over the last 18-months; the challenges and support provided have been invaluable. It would also like to extend its thanks to NorthEdge for its investment in and commitment to Correla and Xoserve.