Energetix and NYSEG Solutions deliver retail electricity and natural gas to residential and commercial clients in New York and Pennsylvania.
The two companies operate as a single retail organization, marketing under the Energetix and NYSEG Solutions brands.
Direct Energy said the acquisition further strengthens its foothold in New York state gas and retail power markets, with an increase in additional customers by about 245,000.
Direct Energy President and CEO Chris Weston said the acquisition of Energetix and NYSEG Solutions marks another step in the expansion of the company’s North American retail energy business.
"Specifically, it supports Direct Energy’s strategy to grow and add scale to its U.S. Northeast downstream power and gas position, particularly in the New York market," Chris added.
Meanwhile, Iberdrola said the transaction is in line with the company’s strategy of divesting non-core assets and comes after a similar deal in February where it agreed to sell The Energy Network to Energenic-US.
The transaction is expected to close in the third quarter of 2012.
