Direct Energy to acquire Bounce Energy for $46 MillionJuly 12, 2013
A. Lee Graham
Direct Energy of Houston has agreed to acquire Bounce Energy, also of Houston, for $46 million in cash plus additional working capital.
The acquisition further strengthens Direct Energy's residential business as the nation’s largest energy retailer.
"The further expansion of our residential business is an essential component of our North American growth strategy," said Badar Khan, president and CEO of Direct Energy, commenting in a news release.
"The acquisition of Bounce Energy will provide customers with more innovative, efficient and competitive energy services options," Khan said.
Bounce Energy’s top executive agrees.
"Direct Energy is the ideal organization with which to expand our e-commerce platform and digital marketing capabilities," said CEO Robbie Wright.
"Its solid financial foundation and the scope of its operational footprint will allow for greater expansion into new U.S. markets to offer customers more competitive energy rates and exceptional customer service," Wright said.
Bounce Energy provides full-service electricity to more than 80,000 residential and small business customers in the competitive energy markets of Texas, Pennsylvania and New York. Direct Energy is expected to leverage Bounce Energy's digital marketing experience to boost its digital sales and service capabilities.
The transaction is subject to regulatory review and is expected to close in the third quarter of 2013.
Direct Energy, a subsidiary of Centrica plc, operates in 46 states, Washington, D.C. and 10 provinces in Canada. More information is available at www.directenergy.com.
Bounce Energy is a privately-owned Texas electricity company. More information is available at www.bounceenergy.com