Company Announcements

Ricardo Completes Acquisition

Source: RNS
RNS Number : 7346N
Ricardo PLC
25 January 2023


Ricardo plc completes acquisition of E3-Modelling to expand its environmental modelling tools

Ricardo plc, a global strategic, environmental and engineering consulting company, is pleased to announce the acquisition of a 93% shareholding of E3-Modelling S.A (E3M), a consultancy which specialises in delivering advanced empirical modelling of the energy-economy-environment nexus, for a consideration of £24m.


Background to E3M

E3M's 34-strong team develops and maintains large-scale models across the energy, environment and transport sectors. Its expertise focuses on the design and impact analysis of the transition of all possible types of power generation technologies, several types of alternative green fuels, energy demand efficiency and mobility restructuring, taking into account the impact of major energy policies on the economies of European countries and globally, with details for more than 50 economic activities. Its integrated modelling tools provide informed, transparent and robust analysis as well as recommendations for its high-profile clients which include the European Commission, national governments, energy regulators and a number of private companies in the energy and transport sectors, financial institutions and strategic consultancies.

Over the past 30 years, E3M has carried out consultancy on every major European energy and climate policy initiative, and its large-scale energy, economy and transport models have been applied at the very heart of European Commission policymaking.


Acquisition rationale:


E3M provides digital modelling capabilities right across the markets that Ricardo serves, making the acquisition highly complementary to Ricardo's unique position at the intersection of the energy, environment and mobility agendas. To date, the use of E3M's models has largely focused on Europe. The combination of E3M's capabilities and expertise with Ricardo's global footprint, services and diversified market expansion will support the Group in creating additional value for its global client base that are focused on their transition towards a low-carbon future.

The acquisition of E3M supports the Company's ambition to be a leader in environmental and energy transition solutions and fits wells within its M&A strategy of acquiring businesses that offer high margin, high growth and lower capital intensity with digital repeatable solutions.


Acquisition details:

Under the terms of the Acquisition, Ricardo has acquired a 93% shareholding for a cash consideration of £24m of which £19m is payable on completion. The deferred earn out of £5m will be paid after the 31 December 2023, subject to the achievement of certain performance metrics.  The resulting ownership model allows for its founders to share in the successful growth in the company. Ricardo retains full control and voting rights in E3M.


In its draft unaudited accounts for the year ended 31 December 2022, E3M reported revenues of c.£4m and an EBITDA margin of c.45%.


Following full integration and realisation of synergies, the Board expects investment returns above Group WACC in the short-term.


Graham Ritchie, Chief Executive Officer of Ricardo, said:


"Ricardo's acquisition of E3-Modelling is fully aligned with our ambition to become a global leader in strategy and engineering consultancy for environmental and energy-transition solutions. It provides an opportunity to deliver repeatable digital models focused on energy markets, climate change and the decarbonisation of transport to governments and corporate clients globally. We already have a strong working relationship with E3-Modelling having worked together for over 10 years, and this acquisition is a natural advancement, combining our skillsets to offer a transformational contribution to Ricardo's energy and environmental services portfolio."


About Ricardo

Ricardo plc is a global strategic, environmental, and engineering consulting company, listed on the London Stock Exchange. With over 100 years of engineering excellence and close to 3,000 colleagues in more than 20 countries, we provide exceptional levels of expertise in delivering innovative cross-sector sustainable outcomes to support energy transition and scarce resources, environmental services together with safe and smart mobility. Our global team of consultants, environmental specialists, engineers and scientists support our customers to solve the most complex and dynamic challenges to help achieve a safe and sustainable world. Visit  


About E3-Modelling

E3-Modelling is a société anonyme (S.A.) company, established in Greece, as a knowledge-intensive consulting company. We deliver consulting services based on the large-scale empirical modelling of the economy-energy-environment nexus: PRIMES, GEM-E3 and Prometheus. We focus on the design of transition in the energy market and systems, both demand and supply of energy, towards green and climate-friendly structures and technologies. With the modelling, we help to assess the transitions from economic, policy and implementation perspectives putting emphasis on the functioning of the system and the markets as a whole when policy instruments influence behaviours and market outcomes. Visit


Media contacts:

Natasha Perfect, Ricardo  

Elisabeth Cowell, SECNewgate


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