Centrica PLC's subsidiary, Direct Energy, agreed to acquire Bounce Energy for US$46 million in cash. In addition, the acquirer will also put in additional working capital to the electricity retailer.
"The acquisition of Bounce Energy marks a further step in the development of our North American residential energy business," said President and CEO of Direct Energy, Badar Khan. Khan further stated: "It will provide our customers with more innovative and efficient energy options and also gives Direct Energy a leading online platform as we look to grow our North American customer base."
This online platform was expected to significantly reduce the cost of acquiring new customers for Direct Energy. Direct Energy also planned to retain a core group of Bounce Energy's personnel. This will ensure that development of the acquired firm's digital capability would continue.
The acquisition was pending approval from regulators. However, the transaction was expected to close by the end of the month.
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