11 September 2002 – Alliance Data Systems Corp., a provider of transaction services, marketing services and credit services, announced Tuesday the acquisition of Enlogix Group from Duke Energy for an undisclosed amount.
With the acquisition of Enlogix, Alliance Data will begin providing customer information system (CIS) hosting for five utility companies, including Union Gas and Pacific Northern Gas, both subsidiaries of Duke Energy.
This arrangement provides a foray for Alliance Data into the Canadian utility market, and offers the opportunity for Alliance Data to provide additional outsourced services, such as customer care, to other North American utility companies.
Alliance Data currently works with a variety of regulated and deregulated energy companies in the United States, providing billing, customer care and targeted marketing programs geared to assist clients as they operate in an increasingly competitive and rapidly changing energy marketplace.
Alliance Data expects this relationship will add revenue of at least $10m annually from the existing core client base and is expected to be neutral to earnings its first year and accretive thereafter.
“We view this relationship with Duke Energy as a great opportunity to partner with an industry leader,” said Mike Beltz, president of Alliance Data’s Transactions Services group. “This deal reinforces the success we’ve had in the utility marketplace, and by adding to our capabilities, reaffirms our position as a leader in outsourcing for the utility industry.”
Duke Energy acquired Enlogix — a provider of billing and customer information services — as well as Union Gas and a 41 per cent interest in Pacific Northern Gas in March 2002 as part of the Westcoast Energy transaction.