Southern Co. Agrees to Buy PowerSecure for Roughly $431 Million

Southern Co. agreed to acquire PowerSecure International Inc. in a deal with a purchase price of roughly $431 million that is expected to expand the power company's ability to provide customized energy products to customers.

Under the deal PowerSecure holders will receive $18.75 a share, a 90% premium to Wednesday's close. PowerSecure's shares, down 34% this year, rose 82% to $17.95 in recent after-hours trading.

PowerSecure provides technology and services to electric utilities and their customers, including infrastructure with smart-grid capabilities.

Southern Co. Chairman and Chief Executive Thomas A. Fanning said in prepared remarks Wednesday that "as energy technologies and customer expectations continue to evolve, the electric utility business model is increasingly expanding beyond the meter."

Atlanta-based Southern owns electrical utilities throughout the Southeast and has competitive generation, fiber optics and wireless communications businesses. Southern Co. has been expanding through acquisitions, including its roughly $8 billion deal for AGL Resources, which is expected to close in the second half of this year.

The PowerSecure deal is expected to close by the end of the second quarter. The companies expect PowerSecure's operations, including its management and corporate headquarters, to remain in Wake Forest, N.C.

PowerSecure is planning a conference call Wednesday at 5:30 p.m. Eastern Time to discuss the deal.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

February 24, 2016 18:15 ET (23:15 GMT)

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