Direct Energy, a competitive retail electricity supplier that provides electricity, natural gas and other energy services to more than 13 million residential homes and businesses across North America, reached an agreement to acquire Bounce Energy, a privately-held retail electricity provider based in Houston, for $46 million in cash plus additional working capital.
"We are always looking for new ways to enhance our customers' experience and satisfaction," said Steven Murray, President of Direct Energy Residential. "Bounce Energy's digital marketing insights and e-commerce platform will bolster our capabilities as we expand our product offerings to current and potential customers."
Direct Energy's residential business is expected to rise through the purchase of Bounce Energy. Providing electricity to more than 80,000 residential and small business customers in the competitive energy markets of Texas, Pennsylvania, and New York, Bounce Energy has a strong profile among customers. Bounce Energy also processes a matchless online presence that few providers can match.
"Bounce Energy has more than 111,000 Likes' on Facebook, making it among the most liked electricity companies on Facebook," Direct Energy wrote in a written statement, explaining the deal. "Earlier this year, Bounce Energy launched a Build Your Own Energy Plan,' the first of its kind in the electricity industry, which allows customers to choose plan length, green energy percentage, billing options and rewards programs."
Direct Energy will retain a core group of Bounce Energy's personnel once the transaction is complete. This will ensure the continued development of its digital capability and allow it to build on this expertise to increase digital sales and service capabilities, as well as accelerating customer growth. This online platform is also expected to reduce significantly Direct Energy’s cost of acquiring new customers, the company said.
The transaction is being reviewed by regulators and is expected to close in the third quarter of 2013.