Britain's OVO Energy announced on Friday that it had agreed to acquire SSE's household energy services arm in a 500 million British pounds (622.8 million U.S. dollars) deal. OVO pays 400 million British pounds in cash and 100 million British pounds in loan notes.
After the acquisition, the companies together will serve around five million British households, making the new entity the second largest supplier behind British Gas.
Founded in 2009, OVO Energy is the largest independent energy supplier in Britain, serving 1.5 million customers across the country.
Last year, OVO increased its British customer base by 50 percent. At present, it runs operations in France and Spain, and plans to launch in Australia, Germany and Italy next year, said OVO.
Stephen Fitzpatrick, CEO and founder of OVO, said: "This transaction marks a significant moment for the energy industry."
"SSE and OVO are a great fit. They share our values on sustainability and serving customers. They've built an excellent team that I'm really looking forward to working with," Fitzpatrick said.
Alistair Phillips-Davies, CEO of SSE, said: "OVO shares our relentless focus on customer service and has a bold vision for how technology can reshape the future of the industry.
"I'm confident that this is the best outcome for the SSE Energy Services business," he said.(1 British pound = 1.25 U.S. dollars)
Editor:Cherie
