Baltimore energy giant Constellation Energy Group, Inc. announced plans to purchase Stamford electricity supplier MXEnergy for $175 million to grow its share in the retail energy market.
Founded in 1999. MXEnergy supplies electricity and natural gas to residential and business customers in deregulated energy markets. The company has 500,000 customers in two Canadian provinces and 15 states, including United Illuminating’s Connecticut territory.
Constellation is becoming a bigger player in the competitive energy supplier market, already having its operating a separate electricity supply company in Connecticut and throughout the country. The company also has 12,000 megawatts of generating capacity in the United States and operates a regulated utility in Maryland, called the Baltimore Gas and Electric Company.
The acquirer, in this case, is about to become an acquiree as well. Chicago-based Exelon agreed in April to buy Constellation for $7.9 billion.
The acquisition between MXEnergy and Constellation, which was announced Thursday, is expected to close in the third quarter. MXEnergy shareholders will receive $3 to $3.28 per share in cash at the closing.
“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’s retail business, in a press release.
