BINGHAMTON — NYSEG Solutions, Inc., a Binghamton–based energy-services retailer, will soon become part of a Houston–headquartered energy firm after its Spanish parent company agreed to sell it and another upstate New York energy subsidiary.
Houston–based Direct Energy, which calls itself one of North America’s largest energy-service providers, announced July 12 that it will acquire NYSEG Solutions and Energetix, Inc., both wholly owned subsidiaries of Iberdrola USA, for
$110.2 million in cash plus additional working capital. Iberdrola USA is part of Spain–based Iberdrola, S.A.
NYSEG Solutions and Energetix, headquartered 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.
Direct Energy says the acquisition will strengthen its presence in the New York market, adding 245,000 customers to its portfolio. It didn’t break out how many of those customers are from NYSEG Solutions. The transaction, subject to regulatory review, is expected to close in the third quarter of this year.
“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 in 2012, Direct Energy has entered 22 new markets while growing its Northeast business to 1.3 million customers.
Direct Energy (www.directenergy.com) says it has more than 6 million residential and commercial customers. The company is a subsidiary of United Kingdom–based energy firm, Centrica plc (OTC: CPYYY), which generates annual revenue of about $35 billion.
NYSEG Solutions, founded in 1998 and headquartered in downtown Binghamton, is an unregulated utility providing 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. It is separate from the regulated utility known as New York State Electric & Gas Corp. (NYSEG), which is still owned by Iberdrola. The news release did not state how many employees work at NYSEG Solutions.
Rochester–based Energetix supplies electricity, renewable energy, natural gas, and energy-related products and services.
Iberdrola USA (www.iberdrolausa.com) has more than 2.4 million customers in New York and throughout New England.