RWE npower has acquired Ystrad Mynach-based specialist energy management company RUMM in a move which could help British business save up to £4bn on their annual energy bills.

The Welsh tech firm, which was spun out of the University of South Wales, uses the latest innovations in cloud-based data analytics to help businesses monitor and control their energy in real time.

Since its inception in 2005, RUMM has already saved more than £43m for its customers.

Npower Business Solutions, which is the second largest supplier of energy to British businesses, will roll out RUMM’s software to its biggest customers during the second quarter of 2015, with the goal of delivering energy efficiency at scale.

Paul Massara, CEO of RWE npower, said: “This deal represents an important investment in both our energy solutions business and the thriving South Wales tech community. With the right support and incentives, we are confident that Welsh start-ups, like RUMM, will continue to grow, exporting their expertise across the world.”

Dr Stephen Lloyd, chairman and co-founder of RUMM, said: “Being part of RWE npower represents a huge opportunity for RUMM. We spoke to a number of energy suppliers, but the way the team at npower want to bring innovation to their customers proved decisive.”