Direct Energy will pay $90m in cash (including $13m of tax assets) plus working capital, for the acquisition of Gateway Energy to expand its presence in New York, New Jersey and Pennsylvania.
With the acquisition of Gateway Energy, the company expects to provide competitive electricity and natural gas solutions to residential and small business customers in the US Northeast and Mid-Atlantic states.
Direct Energy said that last year it has begun serving residential customers in nine new electricity markets and four new natural gas markets, with a total market size of 12 million residential customer accounts.
The company also acquired Clockwork Home Services to provide home energy services in North America.
The transaction is expected to close in early May of 2011.
Gateway Energy is focused on serving the power and natural gas needs of residential and commercial customers.
