The merged companies will be serving more than 7 million customers across the United States.

Under the terms of the agreement, Vectren shareholders will receive $72 in cash for each share of Vectren common stock. CenterPointEnergy will also assume all outstanding Vectren net debt.

“This merger represents a significant step toward our vision to lead the nation in delivering energy, service, and value. By combining our two highly complementary companies, we are creating an energy delivery, infrastructure, and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy.

The combined company is expected to have electric and natural gas delivery operations in eight states with assets totaling $29 billion and an enterprise value of $27 billion.

By combining their experienced professionals and complementary businesses, CenterPoint Energy and Vectren say they will create a strong, diversified company with compelling advantages and benefits.

CenterPoint Energy will contribute an additional $3 million per year for a minimum of five years after the closing of the merger to the Vectren Foundation, which will continue to operate out of Evansville.

Both companies say they are dedicated to supporting local charities, fostering employee volunteerism and building partnerships with diverse area businesses.