- Comverge and Constellation have reached an agreement to combine their demand response businesses, targeting commercial and industrial customers.
- After the deal has closed, Constellation intends to promote demand response services to its power and gas customers through the new company. The combined entity will operate as a standalone business.
- The companies say the merger will create one of the largest demand response service providers in the rapidly-evolving industry.
Comverge and Constellation's decision to merge their demand response businesses means no change for customers as the two companies work out the details, they said. Constellation will market to its existing customers through the new endeavor, and the "ongoing relationship will ensure that demand response products will remain a component within Constellation’s suite of retail products," the company said.
H.I.G. Capital will hold a majority ownership interest in the new company, and Constellation will retain a minority ownership interest. The deal is expected to close in the fourth quarter.
“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," said Comverge chairman, president and CEO Gregory Dukat. "This is where we have developed considerable expertise over our successful history working with many of the largest and most innovative utilities.