Comverge And Constellation Agree to Combine Commercial and Industrial Demand Response Businesses to Form New Company
October 6, 2014
NORCROSS, Ga., and BALTIMORE (October 6, 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 will become one of the largest demand response companies in the industry. H.I.G. Capital will hold a majority ownership interest in the new company, and Constellation will retain a minority ownership interest.
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.
“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.”
“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.”
More information about the new company will be available at closing, which is expected during the fourth quarter. Terms of the transaction were not disclosed.
Comverge delivers a comprehensive suite of intelligent energy management solutions that enable utilities, grid operators, and commercial and industrial organizations to optimize their energy usage in order to reduce costs, meet regulatory requirements, and support sustainability initiatives. With 40 years of experience helping customers implement innovative demand-side management programs, Comverge has deployed more than five and a half million energy management devices, recruited over one million residential customers into mass market demand response programs, and served thousands of commercial & industrial customers. For more information, visit www.comverge.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $17 billion of capital under management.* The H.I.G. family of funds includes private equity, growth equity, real estate, credit, and life sciences. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in the small to middle cap segments of the market in the U.S., Europe and Latin America. H.I.G. was founded in 1993 and currently employs over 250 investment professionals with significant operating and investing experience. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.
Constellation is a leading competitive retail supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. Constellation's family of retail businesses serves approximately 2 million residential, public sector and business customers, including three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's leading competitive energy provider, with 2019 revenues of approximately $34 billion, and more than 31,000 megawatts of owned capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.
Jason Cigarran; Comverge, Inc.