Constellation, Comverge to Combine C&I Demand Response Business to Form New Company

Comverge and Constellation announced that they have signed an agreement to combine their demand response businesses serving commercial and industrial 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 companies said.

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

"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," the companies said.

There will be no changes for Comverge or Constellation customers as the companies work through the process of closing the agreement.

"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. “

After the transaction, Comverge will focus exclusively on delivering solutions to help electric utilities deploy successful demand response, energy efficiency, and customer engagement programs targeting residential and small business customers.

The transaction is expected to close in the fourth quarter