HOUSTON, July 12, 2012 /PRNewswire/ -- Direct Energy, one of North America's largest competitive energy and energy-related services companies, has reached an agreement to acquire the upstate New York-based energy retailers Energetix, Inc. and NYSEG Solutions, Inc., both wholly owned subsidiaries of Iberdrola USA, for $110.2 million in cash, plus additional working capital.
Based in Rochester and Binghamton, New York, Energetix and NYSEG Solutions supply retail electricity and natural gas to residential and commercial customers in New York and Pennsylvania. The companies operate as a single retail organization, marketing under the Energetix and NYSEG Solutions brands. The acquisition further strengthens Direct Energy's strong position in the New York state gas and power markets, increasing the number of customers by approximately 245,000.
"The acquisition of Energetix and NYSEG Solutions marks another step in the expansion of our North American retail energy business," said Chris Weston, President and CEO of Direct Energy. "Specifically, it supports Direct Energy's strategy to grow and add scale to its U.S. Northeast downstream power and gas position, particularly in the New York market."
The addition of Energetix and NYSEG Solutions is the latest step in Direct Energy's continued strategic growth of its North American downstream business in competitive retail markets. Earlier this year, Direct Energy announced the addition of 280,000 new residential and small business customers to its U.S. Northeast customer base following the acquisition of Vectren Source, a supplier of natural gas in Ohio, Indiana and New York. In addition, in 2012 the company entered a total of 22 new markets while achieving significant organic growth in the U.S. Northeast.
"For the last decade, Direct Energy has been a significant presence in the North American retail energy market," said Steven Murray, President of Direct Energy Residential. "We will now have more than 1.3 million customers in the U.S. Northeast, and the addition of Energetix and NYSEG Solutions will help us continue to provide more customers in the region's competitive retail markets with superior service and innovative energy solutions."
The transaction is subject to regulatory review and is expected to close in the third quarter of 2012.
About Direct Energy
Direct Energy is one of North America's largest energy and energy-related services providers with over six million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE: CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 states plus DC and 10 provinces in Canada. To learn more about Direct Energy, please visit www.directenergy.com.
About Energetix, Inc.
Energetix, Inc., founded in 1998 in Rochester, NY, is a subsidiary of Iberdrola USA. The company supplies electricity, green (renewable) energy, natural gas, and energy related products and services to all customer classes from residential to large commercial/industrial in New York State. The company provides electricity to PP&L and PECO customers in PA.
About NYSEG Solutions, Inc.
NYSEG Solutions, Inc., founded in 1998 and headquartered in Binghamton, NY, is an Energy Services Company (ESCo) that provides electricity and natural gas supply, green energy, Renewable Energy Credits (RECs), and other energy related products and services to residential, small business, and large industrial/commercial customers. We are one of the leading energy and green energy suppliers in New York State.
About Iberdrola USA
Iberdrola USA, a subsidiary of global energy leader, Iberdrola S.A., is an energy services and delivery company with more than 2.4 million customers in upstate New York and New England. We are a team of dedicated individuals working as one to deliver value to our customers, employees and shareholders. By providing outstanding customer service and exceptional reliability, while holding safety and the environment in high regard, we aspire to be a world-class energy company. For more information, visit www.iberdrolausa.com.
SOURCE Direct Energy