It was recently announced that natural gas marketer Direct Energy has purchased one of its competitors, Vectren Source.
Vectren Source is a subsidiary of Vectren Corp., the regulated utility in parts of Indiana and Western Ohio. Direct Energy purchased Vectren Source for $39 million in cash plus other considerations.
Besides marketing natural gas in Ohio, both are heavily involved in aggregation contracts for local communities for bulk buying.
Direct Energy said in a statement the acquisition is a part of its plan for growth. Earlier, Direct Energy purchased Gateway Energy Services, which also does business in Ohio, and First Choice Power in Texas.
For customers, there should be no noticeable change. The companies will continue to operate as separate brands for three to five years. Last year, Direct also purchased Gateway Energy Services, which also does business in Ohio.
Similarly, last year, Constellation Energy purchased competitor MXenergy. For the short-term, the two companies also continue to operate separately.
— Betty Lin-Fisher
