NRG Energy Inc. announced March 27 that it will acquire retail electricity, renewable and natural gas provider XOOM Energy LLC in a $210 million deal that will add more than 300,000 customers, primarily in Eastern markets.
NRG executives unveiled the deal during the company's analyst day in New York. The all-cash transaction will be funded with $75 million of excess cash and $135 million of debt, according to the company's presentation.
The deal is expected to close in the second quarter. XOOM Energy is headquartered in Huntersville, N.C., and is an independent retail power and natural gas provider in more than 90 deregulated markets across the U.S., according to the company's website.
Power sector executives and advisers told S&P Global Market Intelligence prior to the analyst day that NRG would unveil its "integrated competitive power" model and move further into the retail power sector as part of a plan to to reduce exposure to wholesale market volatility.