by Brianna Crandall — October 8, 2014—Comverge and Constellation have signed an agreement to combine their demand response businesses serving commercial and industrial (“C&I”) customers. The combined business will be operated as a new standalone company independent from Comverge and Constellation and will focus on delivering a full spectrum of demand response offerings to C&I customers across the United States. The merged enterprise is expected to become one of the largest demand response companies in the industry.
The companies say that there will be no changes for Comverge or Constellation customers as the companies work through the process of closing the agreement. After the close of the transaction, Constellation will continue to promote demand response services to its power and gas customers through the new company. This ongoing relationship will ensure that demand response products will remain a component within Constellation’s suite of retail products.
“This move will allow our customers to benefit from a company solely dedicated to DR products and services,” said Mark Huston, president, Constellation Retail. “The new company will be able to meet increasingly technical demands while maintaining best-in-class offerings to support a holistic energy strategy for customers.”
“By combining these two businesses, the new company’s size, focus and years of expertise helping C&I customers successfully participate in demand response programs make it a formidable presence in the market,” said Gregory Dukat, Comverge chairman, president and CEO. “Both companies have distinguished themselves in this market by building enduring relationships with their customers with strong reputations as trusted advisors.”
Added Dukat, “After this transaction, Comverge will now focus exclusively on delivering world-class solutions to help electric utilities deploy successful demand response, energy efficiency, and customer engagement programs targeting residential and small business customers. This is where we have developed considerable expertise over our successful history working with many of the largest and most innovative utilities.”
More information about the new company will be available at closing, which is expected during the fourth quarter. H.I.G. Capital will hold a majority ownership interest in the new company, and Constellation will retain a minority ownership interest. Terms of the transaction were not disclosed.
