Wake Forest energy services provider PowerSecure International will be acquired by the Southern Company, one of the nation’s largest electric utilities, both companies announced Wednesday.
As part of the $431 million acquisition, PowerSecure shareholders will be paid $18.75 per share. The deal was announced after the close of market trading.
The directors of both companies have approved the deal, but it still must be approved by PowerSecure’s shareholders.
PowerSecure’s stock had traded as high as $15.71 in late December as the company posted record revenue last year. But its shares have been declining this year and closed Wednesday at $9.87, down 56 cents.
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PowerSecure employs more than 900 people and has doubled in size in recent years as it has expanded its reach in energy efficient lighting, utility infrastructure work and emergency backup generators for grocery stores and other large customers.
The deal is expected to be completed in June, after which PowerSecure will become a Southern Company subsidiary and keep its headquarters and management team in Wake Forest.
PowerSecure CEO Sidney Hinton was employed in various capacities at Southern Company, and its Georgia Power subsidiary, from 1982 until 1997.
Atlanta-based Southern Company has 4.5 million customers in Georgia, Alabama, Mississippi and Florida.