BINGHAMTON — Houston-based Direct Energy, will acquire NYSEG Solutions, Inc. and Energetix, Inc., both wholly owned subsidiaries of Iberdrola USA for $110.2 million in cash plus additional working capital.
NYSEG Solutions and Energetix, based in Binghamton and Rochester respectively, supply retail electricity and natural gas to customers in New York and Pennsylvania. The two companies operate as a single retail organization, marketing under both brands.
The acquisition strengthens Direct Energy’s presence in the New York market, adding 245,000 customers to its portfolio. The transaction, subject to regulatory review, will close in the third quarter of 2012.
(Sponsored)
What is Fiducuary Liability and how does it affect you and your business?
Managing a company’s insurance needs can be complex and stressful. It doesn’t need to be when adding certain specialty insurance products, like fiduciary liability insurance. It protects the sponsoring company;
Fraud Contingencies Plans Are Essential
Your business likely has a disaster recovery plan in place—procedures for handling fires, natural disasters or other crises that could disrupt operations or endanger lives. While a fraud contingency plan
“The acquisition of Energetix and NYSEG Solutions marks another step in the expansion of our North American retail-energy business,” Chris Weston, president and CEO of Direct Energy, said in a news release. “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.”
Earlier this year, Direct Energy added 280,000 new Northeast customers when it acquired Vectren Source, a natural gas supplier in Ohio, Indiana, and New York. So far this year, Direct Energy has entered 22 new markets while growing its Northeast business to 1.3 million customers.
Based in Houston, Direct Energy (www.directenergy.com) has more than 6 million residential and commercial customers. The company is a subsidiary of Centrica plc, a global energy company.
Binghamton–based NYSEG Solutions is an energy-services company providing electricity, natural gas, renewable energy and credits, and other energy-related products to residential, small business, and industrial and commercial customers.
Rochester–based Energetix supplies electricity, renewable energy, natural gas, and energy-related products and services as well as provides electricity to customers in Pennsylvania.
Iberdrola USA (www.iberdrolausa.com) has more than 2.4 million customers in New York and throughout New England.
Contact DeLore at tdelore@cnybj.com
