Drax to Acquire Flexitricity in £36m Deal to Boost Battery Storage and FlexGen Growth

Drax Group plc ( (GB:DRX) ) has shared an announcement.

Drax Group has agreed to acquire Flexitricity Limited, a UK-based optimiser of flexible energy assets, for £36 million, subject to regulatory approvals, with completion expected in the first quarter of 2026. Flexitricity, founded in 2004 and headquartered in Edinburgh, operates a proprietary AI- and machine learning-enabled platform that provides optimisation and route-to-market services for over 900MW of operational assets, including battery storage, gas peakers, renewables and demand-side response, and its roughly 85 employees will join Drax. The acquisition is expected to generate returns significantly above Drax’s cost of capital and will materially strengthen the Group’s FlexGen business by adding scalable technology and expertise to support its gigawatt-scale BESS growth plans and expand its capability to optimise both its own and third-party flexible energy assets, reinforcing Drax’s role in UK energy security and new energy services for customers.

The most recent analyst rating on (GB:DRX) stock is a Buy with a £985.00 price target. To see the full list of analyst forecasts on Drax Group plc stock, see the GB:DRX Stock Forecast page.

Spark’s Take on GB:DRX Stock

According to Spark, TipRanks’ AI Analyst, GB:DRX is a Outperform.

Drax Group plc’s strong financial performance, particularly in cash generation and profitability, along with positive technical indicators and a favorable valuation, contribute significantly to its overall score. The company’s strategic initiatives, including share buybacks and government agreements, further bolster its market position. However, challenges in revenue growth and market dynamics in the pellet sector pose risks that need careful management.

To see Spark’s full report on GB:DRX stock, click here.

More about Drax Group plc

Drax Group plc is a UK-based energy company focused on flexible generation and energy solutions, including optimisation and route-to-market services for embedded third-party renewable assets. Through its Drax Energy Solutions business, it already manages around 800MW of capacity from approximately 2,000 embedded renewable assets, and is developing its FlexGen business with an ambition to build a gigawatt-scale pipeline of battery energy storage system (BESS) opportunities.

Average Trading Volume: 1,228,249

Technical Sentiment Signal: Buy

Current Market Cap: £3.05B

For a thorough assessment of DRX stock, go to TipRanks’ Stock Analysis page.