Xpansiv to acquire energy markets brokerage firm Evolution Markets

Joe Madden, Chief Executive Officer at Xpansiv

Xpansiv, the market-infrastructure platform for environmental commodities, announced an agreement to acquire Evolution Markets, a top brokerage firm in carbon, renewable, and energy markets. The combined entity will benefit from Evolution Markets’ base of over 2,000 clients, including the largest energy firms, corporations, utilities, and financial institutions.

What does the acquisition mean for both companies?

“We’re excited to further leverage our environmental and energy market infrastructure through this acquisition. Together, we can effectively execute our strategy to scale our global platform. Evolution Markets’ proven team will help drive sales and marketing efforts as we work to bring the benefits of our infrastructure – transparency, scale, and confidence – to rapidly growing environmental markets,” said Xpansiv President and COO John Melby.

“We’re proud of what we’ve built over the last 20 years, and the powerful combination with Xpansiv will help drive continued innovation in market solutions to address climate change. The energy transition and increasing corporate ambition to reduce carbon footprint require next-gen market infrastructure, which is what Xpansiv – with the help of Evolution Markets – will deliver,” said Evolution Markets Co-Founder and Executive Chairman Andrew Ertel.

Xpansiv’s acquisition of Evolution Markets is expected to be completed before the end of the year, upon receipt of regulatory approvals and satisfaction of customary closing conditions. Following the transaction close, Evolution Markets will be operated as a wholly owned subsidiary. The recent Blackstone strategic investment in Xpansiv will support the purchase.

What does the deal mean for both companies’ clients?

“We look forward to working together to scale up environmental and energy transition markets to meet growing demand for trusted, market-based solutions. By joining Xpansiv, Evolution Markets will be able to continue building its sustainable-solutions footprint and environmental and energy markets transaction services, which will better position our clients to compete in a carbon-constrained world,” commented Evolution Markets CEO Evan Ard.

“With the inclusion of APX and Evolution Markets, Xpansiv is the premier market-infrastructure platform for environmental commodities,” said Xpansiv CEO Joe Madden.

“We provide a clear path to action, connecting buyers and sellers of vital environmental commodities, including carbon offsets, renewable energy credits (RECs), and low-carbon fuels – critical elements of global decarbonization,” Madden further commented.

Evolution Markets was advised by JMP Securities, a Citizens Company, which acted as the sole financial advisor, and Stroock & Stroock & Lavan LLP which served as legal advisor.

Venable LLP acted as legal advisor to Xpansiv.