PLATTSBURGH — An agreement has been reached to sell two Energy Supply Companies that customers can designate to have power delivered to them through New York State Electric and Gas and National Grid infrastructure, among others.
Energy-related services company Direct Energy is acquiring Energetix Inc. and NYSEG Solutions Inc., both wholly owned subsidiaries of Iberdrola USA, for $110.2 million in cash, plus additional working capital.
Energetix, based in Rochester, and NYSEG Solutions, based in Binghamton, 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 increases Direct Energy’s gas and power customers by approximately 245,000, a press release said.
Direct Energy President and CEO Chris Weston said the acquisition of Energetix and NYSEG Solutions marks another step in the expansion of the company’s North American retail energy business.
“Specifically, it supports Direct Energy’s strategy to grow and add scale to its Northeast downstream power and gas position, particularly in the New York market,” he said.
Earlier this year, the company added 280,000 new residential and small-business customers to its Northeast customer base following the acquisition of Vectren Source, a supplier of natural gas in Ohio, Indiana and New York.
Direct Energy Residential President Steven Murray said Direct Energy has been a significant presence in the North American retail-energy market for the last decade.
“We will now have more than 1.3 million customers in the 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,” he said.
The transaction is subject to regulatory review and is expected to close in the third quarter of 2012.