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.”
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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.