Headquartered in Dallas, Ambit Energy serves close to 1.1 million residential customers in deregulated markets across the US
Image: Ambit Energy to be acquired by Vistra Energy. Photo: courtesy of 41330 from Pixabay.
Texas-based electric utility Vistra Energy has agreed to acquire Ambit Energy for $475m (£391.8m) plus net working capital in an all-cash deal.
Ambit Energy is an electricity and gas provider headquartered in Dallas, Texas. The utility caters to nearly 1.1 million residential customer equivalents across 17 US states.
The acquisition is expected to consolidate Vistra Energy’s position among the leading residential retail electric providers in Texas. The company’s share of the Electric Reliability Council of Texas (ERCOT) residential market, following the acquisition, will increase from nearly 25% to around 32%.
Through the acqusition, Vistra will gain a new complementary sales channel, with Ambit being one of the largest energy-focused direct sellers in the US. The acqusition also includes Ambit’s advanced custom-built technology platform.
Vistra Energy president and CEO Curt Morgan said: “Ambit is a very attractive standalone retail company and a great match for Vistra’s retail business, given its leading direct selling capability and its proprietary technology platform.
“This acquisition offers significant benefits including consequential synergies and a material enhancement of Vistra’s generation to retail load match, with total customers reaching nearly 5 million, and our expected returns from the transaction representing a superior use of capital.”
The transaction, which is subject to approval from the US Federal Energy Regulatory Commission (FERC), other regulatory approvals, and meeting of customary closing conditions, is expected to be completed by the end of the year.
Vistra Energy recently closed the acqusition of Crius Energy
Vistra Energy’s move to purchase Ambit follows the recently concluded acquisition of Connecticut-based Crius Energy for a price of about $378m (£311.79m) plus the assumption of the latter’s net debt of nearly $108m (£89.08m).
Vistra Energy acquired Crius Energy to become one of the major residential electricity providers in the US with operations spread over 19 states and the District of Columbia.