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Constellation to Acquire MXenergy
May 12, 2011
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Constellation Energy announced this morning a definitive agreement to acquire 100 percent of MXenergy, which serves more than half a million customers in 15 states and two Canadian provinces.
The proposed transaction to purchase MXenergy for $175 million, subject to normal adjustments, would provide Constellation with nearly a dozen new mass markets where Constellation is not currently active for small volume customers, notably including Texas, Connecticut, New York, Georgia, and Pennsylvania. MXenergy also serves customers in Massachusetts, New Jersey, Maryland, Ohio, Michigan, Indiana, Illinois, Kentucky, Florida, California, Ontario, and British Columbia.
Constellation said that MXenergy supplies gas and electricity to more than 540,000 residential and small commercial customers. As of December 31, 2010 (its most recent quarterly report), MXenergy reported Residential Customer Equivalents of 618,000; however, this amount included customers served under the 2010 the Columbia Ohio Standard Service Offer auction whose term ended April 1.
"MXenergy provides us with a broad platform that supplements our growing retail business, particularly in the residential market, at a time when customers are choosing energy suppliers in significant numbers," said Mark Huston, head of Constellation Energy's retail business.
"By combining forces with Constellation, we strengthen our ability to provide customers with quality service and innovative products that can help them manage their energy needs," said Jeffrey Mayer, president and chief executive officer of MXenergy.
Huston said the acquisition positions Constellation Energy to exceed 1 million mass market customers by the end of 2011. Constellation Energy has been steadily growing its residential base the past year by offering electric choice to residential customers in Maryland, Washington, D.C. and parts of New Jersey and Illinois, as well as residential gas choice in Ohio.
MXenergy has more than 200 employees and is headquartered in Stamford, Conn., with a major operational office in Houston, Texas, and call-center operations in Annapolis Junction, Md.
The definitive agreement signed by MXenergy and Constellation Energy is scheduled to close in the third quarter, subject to required regulatory approvals and approval by MXenergy shareholders.
Constellation is in the process of merging with Exelon.
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