Vectren has entered into a merger agreement with CenterPoint Energy. The two companies released a joint statement Monday announcing the merger.
According to the terms of the agreement, Vectren shareholders will receive $72 in cash for each share of Vectren common stock. CenterPoint Energy will also assume all outstanding Vectren net debt.
The combined company will provide energy for more than seven million customers in eight states, with a value of $29-billion dollars in assets.
With the merger, CenterPoint Energy expects to grow five to seven percent in 2019 and 2020.
Once the merger is complete, Scott Prochazka will serve as president and CEO of the combined company.
The merger is expected to close by the first quarter of 2019. Until then, the companies will remain separate companies.