CNA: Centrica plc: Acquisition
UK Regulatory Announcement
CENTRICA TO ACQUIRE LEADING ONLINE ENERGY RETAILER IN TEXAS
Centrica plc’s North American subsidiary, Direct Energy, has agreed to acquire
the privately-owned Texas-based electricity retailer Bounce Energy (“Bounce”)
for $46 million (£30 million) in cash plus additional working capital.
Bounce has more than 80,000 residential customers, predominantly in Texas, and
has developed a leading internet-based platform for marketing innovative
products to customers and servicing their accounts.
Direct Energy will retain a core group of Bounce personnel. This will ensure
the continued development of its digital capability and allow it to build on
this expertise to increase digital sales and service capabilities, as well as
accelerating customer growth. This online platform is also expected to reduce
significantly Direct Energy’s cost of acquiring new customers.
Badar Khan, President and CEO of Direct Energy, said: “The acquisition of
Bounce Energy marks a further step in the development of our North American
residential energy business. It will provide our customers with more
innovative and efficient energy options and also gives Direct Energy a leading
online platform as we look to grow our North American customer base.”
Centrica Investor Relations: +44 (0)1753 494900
Centrica Media Relations: +44 (0)800 107 7014
Bounce Energy is headquartered in Houston, Texas.
A further contingent payment of $5 million will become payable, subject to
certain performance related conditions being achieved.
The transaction is subject to regulatory approval and is expected to close by
the end of July 2013.
The transaction will be made through Centrica’s wholly owned subsidiary,
Direct LP, Inc.
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