Constellation Energy Group Inc. (NYSE: CEG) announced that it has purchased 100% of the equity of energy retailer MXenergy for US$175 million in cash.
The merger adds another 500,000 customers to Constellation's growing customer base. The company hopes to have one million customers by the end of the year.
The merger also aligns the company's commitment to clean energy. Constellation, which recently began constructing the United States' largest rooftop solar installation for ToysRus in New Jersey, boasts an energy portfolio with 1,000 MW of renewable energy, including the newly added Criterion Wind Farm -- Maryland’s first commercial wind energy project.
The merger will add a company in MXenergy that was not only one of the first energy companies to become a member of the Chicago Climate Exchange, but also offers its customers MXearth carbon offset and MXearth renewable energy products.
Pending shareholder and regulatory approvals the aquistion is expected to close in the third quarter.
"In merging with MXenergy, Constellation demonstrates its continuing commitment to the retail energy business," said Chaitu Parikh, Executive Vice President of MXenergy.
He added, "Already a major supplier to large commercial and industrial customers, Constellation sees MXenergy and its proven national platform as an important vehicle for growth of its residential and small to mid-market commercial supply business. This is very exciting news and a huge compliment to the business we have built to date."
Joseph Baker is a freelance writer living in Vancouver BC. His areas of focus include renewable energy, sustainability and climate change.
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