Fortune 500-listed energy utility company CenterPoint Energy has announced that it has agreed to acquire Indiana-based rival Vectren in a deal valued at $6bn.
The merger will see Vectren shareholders receiving $72 per share in an all cash deal, representing a 10% premium compared to the company’s unaffected share price.
“This merger represents a significant step toward our vision to lead the nation in delivering energy, service and value,” said Scott Prochazka, President and Chief Executive Officer of CenterPoint Energy.
“By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses.”
Once complete, Vectren’s operations will add 1mn utilities customers to CenterPoint’s existing 6mn-customer portfolio, resulting in the creation of a combined company taking ownership of $29bn worth of assets across eight US states, valuing the firm at $27bn.
“Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come,” said Vectren’s Chairman, President and Chief Executive Officer, Carl Chapman.
Houston, Texas-based CenterPoint Energy will acquire all of Vectren’s outstanding debt upon closing of the acquisition, expected to close in Q1 2019.