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Vistra Energy to purchase electricity retailer, increasing role in Texas

Vistra Energy Corp. entered into an agreement to acquire Ambit Energy Holdings LLC, a Dallas-headquartered stand-alone retail energy business, for $475 million plus net working capital.

Two-thirds of Ambit's retail load is in the Electric Reliability Council of Texas market, with PJM Interconnection representing its next-largest territory. Residential and small-business customers account for 90% of the company’s load, Vistra said in a news release Aug. 20.

Upon closing, the all-cash transaction will boost Vistra's share of the ERCOT market from 25% to about 32% and its share in all U.S. competitive markets to 26%, according to the statement.

Vistra President and CEO Curt Morgan in the statement cited Ambit's "direct selling capability and its proprietary technology platform" as key benefits of the acquisition while saying the deal will have minimal impact on the buyer's credit metrics and capital allocation plan.

Expanding the retail business has been central to Vistra's strategy over the past year. The company launched new retail business Brighten Energy in March and in July sealed its an of retailer Crius Energy Trust, which expanded the company's retail presence from five states to 19 states and Washington, D.C.

Scotiabank acted as Ambit's financial adviser, with Munsch Hardt Kopf & Harr PC acting as legal counsel. Latham & Watkins LLP was Vistra's legal adviser.

The deal, which requires approval by the Federal Energy Regulatory Commission, is expected to close by the end of 2019.