Commerce Energy Group to Acquire ACN Energy and Form Strategic Sales Alliance With ACN, Inc.
February 09 2005 - 5:21PM
PR Newswire (US)
Commerce Energy Group to Acquire ACN Energy and Form Strategic
Sales Alliance With ACN, Inc. COSTA MESA, Calif., Feb. 9
/PRNewswire-FirstCall/ -- Commerce Energy Group, Inc. (AMEX:EGR) a
leading U.S. electricity service provider, today announced it has
entered into an agreement to acquire the assets of ACN Energy, a
division of ACN, Inc., the world's largest direct selling company
serving the telecommunications and energy sectors. As a result of
this transaction, Commerce Energy Group will be rebranding its
retail business unit, electricAmerica, as Commerce Energy, Inc and
transitioning the ACN Energy licenses and customers to that entity.
Upon completing the transition, Commerce Energy Inc. will have
electricity customers in Texas, California, Pennsylvania, New
Jersey, and Michigan, and natural gas customers in New York,
California, Pennsylvania, Ohio, Georgia, and Maryland. Commerce
Energy plans to cross sell and expand in each of these markets by
offering customers in all markets both natural gas and electricity
where regulations allow. Employees of ACN Energy will be offered
employment with Commerce Energy. The purchase price for the
acquisition consists of $6.5 million in cash, plus 930,233 shares
of Commerce Energy's Common Stock, valued at $2.0 million, based
upon the AMEX closing February 8, 2005 market price for Commerce's
Common Stock. The shares of Commerce Common Stock to be issued to
ACN in the acquisition will be held in escrow and released to ACN
as certain customer acquisition targets are achieved. If the
targets are not achieved in full, any shares not released to ACN
will be returned to Commerce Energy. ACN was also paid at closing
approximately $5.5 million dollars for certain cash prepayment
items relating to the assets being acquired. In addition to the
acquisition agreement, the parties have entered into a strategic
sales alliance that enables ACN's extensive sales force to continue
selling energy products for Commerce Energy. The alliance expands
both Commerce Energy and ACN's market opportunities with additional
energy markets and a more diversified product portfolio targeting
both consumer and commercial customer segments in natural gas and
electricity. "The ACN Energy acquisition achieves several key
objectives toward our corporate strategies of diversifying into
natural gas and expanding our market footprint while lowering our
regulatory risk profile. The added benefit of partnering with ACN's
impressive sales force and low cost customer acquisition model
makes this a very compelling deal for all concerned," said Peter
Weigand, President of Commerce Energy Group. "ACN is very excited
about our alliance with Commerce Energy Group, as it significantly
enhances the customer experience while simultaneously accelerating
opportunities for our sales representatives," said Robert
Stevanovski, Co-Founder and Chairman of ACN. "As we continue our
rapid expansion in the global telecommunications markets, aligning
with Commerce Energy allows us to both to focus on what we do
best." About ACN ACN is a leading direct selling company offering
highly competitive fixed and mobile telephone services, Internet
access, gas and electricity services to consumers and small
businesses in North America, Europe, and Australia. ACN markets
directly to consumers and small businesses using thousands of
commission-based Independent Business Representatives. ACN's
services are available in: Australia; Austria; Belgium; Canada:
Denmark; Finland; France; Germany; Ireland; Italy; Netherlands;
Norway; Portugal; Sweden; Switzerland; Spain; the United Kingdom
and the United States. For more information visit
http://www.acninc.com/. About Commerce Energy Group, Inc Commerce
Energy Group, Inc. is a provider of energy products and services to
homeowners, commercial and industrial consumers, utilities,
governments and energy asset owners. Operating since 1998 as
Commonwealth Energy Corporation, Commerce Energy Group now operates
through its subsidiaries including Commonwealth Energy Corporation,
which holds FERC and state licenses for retail and wholesale energy
commodities and is a retail electricity provider to homes and
businesses in California, Michigan, Pennsylvania and New Jersey
under the brand name "electricAmerica"; Skipping Stone, an energy
consulting firm; and utiliHost, an outsourcing services and
technology provider. For more information visit
http://www.commerceenergy.com/ . Forward-Looking Statements:
Certain statements contained within this press release including,
without limitation, statements containing the words "believe,"
"anticipate," "expect," "estimate," "await," "continue," "intend,"
"plan" and similar expressions are forward-looking statements that
involve risks and uncertainties. These forward-looking statements,
are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Actual
outcomes and results may differ materially from what is expressed
in, or implied by, such forward-looking statements. The risks and
uncertainties that could cause actual results to differ materially
from those expressed in, or implied by, the forward-looking
statements include, but are not limited to, the volatility of the
energy market, competition, Commerce Energy's ability to
successfully integrate newly-acquired businesses, operating
hazards, uninsured risks, changes in energy-related state
legislation, failure of performance by suppliers and transmitters,
uncertainties relating to litigation, changes in general economic
conditions, increased or unexpected competition, and other matters
disclosed in Commerce Energy's filings with the Securities and
Exchange Commission. Further, Commerce Energy undertakes no
obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. DATASOURCE: Commerce Energy Group, Inc.
CONTACT: Investor Relations, Verna Ray, , or +1-714-259-2500 of
Commerce Energy Group; or Sheila Marcello, Director of Marketing,
North America of ACN, Inc., , or +1-704-632-3683 Web site:
http://www.acninc.com/ Web site: http://www.commerceenergy.com/
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