The purchase price includes the assumption of approximately $230m of debt on closing of the transaction.

The company will acquire all of the outstanding common shares of CVPS for $35.10 per share in cash.

The closing of the acquisition, which is expected to occur within six to 12 months, is subject to receipt of approval of CVPS shareholders and regulatory and other approvals.

Fortis president and CEO Stan Marshall said that the acquisition of CVPS represents the initial entry by Fortis into the US regulated electric utility marketplace.

CVPS is mainly engaged in the purchase, production, transmission, distribution and sale of electricity.