Varo acquires Elexon

The acquisition of Elexon expands Varo's e-mobility business, particularly with its majority stake in Road (formerly known as E-Flux), the leading provider of software for vehicle charging. While Varo is driving the expansion of Road across Europe, Elexon extends the customer base in Germany and builds on the existing partnership between Varo and Elexon. While it may sound convoluted, it essentially means that the consolidation of Elexon into the Varo Group aims to create a "ready-to-use charging service for electric vehicles," which includes installation, charging, and price optimization for customers, significantly reducing the complexity of electrifying commercial fleets. Dev Sanyal, CEO of Varo, comments on this:

"The acquisition of Elexon is an important step for Varo's e-mobility business. Combined with our leading charging software from our 'Road' business, we will offer our customers an integrated charging service for fleets—from the installation of the infrastructure to price optimization and portfolio management. Our customers want simpler, cost-effective solutions for decarbonizing their operations. With Elexon, VARO has taken a major step forward in offering them this in e-mobility."

Varo views Germany as a continued growth market

The additional offering of Charging as a Service (CaaS) enables customers to maintain control over their energy costs while transitioning gradually to an electric logistics operation. Germany is a key market for the Swiss Varo, where the company aims to accelerate its growth by leveraging its infrastructure and economic engagement with the goal of becoming the preferred energy partner.

An additional pillar alongside other energy carriers

Background: Varo's German business has consistently made a significant contribution to the group's EBITDA in recent years. Varo's investment in Elexon supports the One Varo transformation strategy launched in July 2022. It strengthens the e-mobility pillar, one of the company's five strategic growth pillars alongside biogas, biofuel, hydrogen, and nature-based carbon removal, and benefits from Varo's existing capabilities in optimizing the value chain as well as risk management in electricity trading and the integration of CO2 certificates.

Elexon provides project development and electrical charging hardware and assists third-party providers across Germany with the installation, operation, and maintenance of charging facilities. To date, Elexon has overseen the introduction of more than 24,000 charging points at over 900 locations in Germany and Europe. The company plans to further expand the installed charging capacity in Germany by 2030, aiming for an installed base of 1.56 gigawatts. With nearly ten years of experience and an established customer base that includes renowned companies like the DHL Group, Elexon is "well-positioned to grow in the emerging commercial vehicle and e-truck sector in Europe," according to Varo. The company has a network of installers that provides a high degree of flexibility for customers to build their charging infrastructure. Marcus Scholz, CEO of Elexon, explains:

"I am proud of the leading position Elexon has achieved in Germany in less than a decade. Varo offers the perfect platform to scale the business geographically and integrate it into a broader range of services, bringing significant benefits to our customers."