Constellation Energy (CEG) has inked a deal to buy StarTex Power for $142.5 million in cash, giving it a foothold over the Texas market and bringing it one step closer to its goal of one million mass market customers by the end of 2011.
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With 170,000 customers, StarTex is a Houston retail electric provider. Constellation said the deal adds to its broader strategy of becoming a leader in the residential sector.
"StarTex Power brings award-winning service for residential and commercial customers to Constellation Energy’s growing residential platform," said Mark Huston, head of Constellation’s retail business, noting it "strengthens our commitment to choice and innovation for customers, continues Constellation Energy’s systematic retail expansion, and brings an employee base that has helped the company win significant awards from rating companies and the Better Business Bureau."
The transaction comes two weeks after Constellation said it would acquired MXenergy, a Connecticut-based supplier of natural gas ad electricity with more than half a million customers.