(July 24, 2020)
NRG Energy Inc. (NRG) announced today it has reached an agreement with Centrica PLC to acquire Direct Energy in a $3.625 billion all-cash transaction. This acquisition would add more than 3 million resident and commercial customers across the U.S. and Canada to NRG’s electricity family.
NRG’s status as a growing, customer-focused energy provider likely will benefit from the addition of more than three million new customers. The transaction is predicted to generate approximately $740 million in annual EBITDA, or earnings before interest, taxes, depreciation, and amortization. Experts predict it will also improve cash flow and earnings diversification.
Direct Energy has operations in all 50 U.S. states and six Canadian provinces, making it one of North America’s largest and most well-known retail energy providers. Centrica PLC acquired Direct Energy in 2000. Direct Energy quickly grew to become one of the largest energy providers in North America, including more than 240,000 business customers.