Market Overview

Southern Company Completes PowerSecure Acquisition For About $425 Million

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Southern Company (NYSE: SO) and PowerSecure International, Inc. (NYSE: POWR) disclosed that they have completed their merger that was worth about $425 million. As a result, PowerSecure has become a fully owned subsidiary of the Company.

According to Southern Company, the terms of the agreement enabled PowerSecure's stockholders to get $18.75 in cash in exchange for each share of PowerSecure common stock on May 9. As a result of the completion of the merger, the company indicated that PowerSecure's common stock ceased to trade on the New York Stock Exchange immediately before May 9.

President and CEO Thomas Fanning said, "For more than a century, the Southern Company system has provided quality service by generating and delivering affordable, reliable electricity to the customer's meter. Today we are thrilled to draw on PowerSecure's nationally recognized expertise to deliver even greater customer value by developing innovative technologies on the other side of the meter."

Southern Company said its current business model provided an opportunity to leverage PowerSecure's unique expertise to help meet customers' energy requirements with the help of advanced technologies. The company acquired a premier provider of distributed infrastructure, offering primarily commercial and industrial customers innovative solutions to meet their individual reliability, energy efficiency or green objectives.

The company pointed out that it recognized these technologies, which typically get highest demand in areas outside of the Southeast – where there was greater opportunity to improve electric reliability, price and customer service. The company believes that the acquisition positioned itself to advance distributed infrastructure development across the U.S.

Shares of the company traded 0.55 percent higher on Monday.

Posted-In: News Contracts

 

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