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Home Warranty of America (HWA), a leading supplier of whole home protection plans across the United States, has been acquired by Direct Energy, North America’s largest competitive energy and energy-related services company, the company has announced.

Headquartered in Buffalo Grove, Illinois, HWA provides whole home warranty services directly to customers and through a national network of real estate agents, insurance professionals, relocation companies, developers, title companies, bankers, home inspectors and mortgage brokers. With the necessary capabilities and licenses to operate in all 50 states, HWA’s comprehensive service delivery network, enterprise software and call center will support Direct Energy’s continued growth as North America’s largest home energy service provider.

“Direct Energy’s commitment to providing the most comprehensive, flexible, value-priced services plans, delivering superior in-house customer service, and national footprint make them our ideal partner as we continue to grow our business,” stated Marc Roth, president of HWA.

In 2010, Direct Energy Services acquired Florida-based Clockwork Home Services to become the largest provider of heating, cooling, plumbing and electrical services, serving more than three million households annually in North America. Clockwork Home Services complements the HWA’s existing business, enhancing its ability to offer protection plans to cover this substantial customer base. The Clockwork network includes the One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky brands.

“The further expansion of our Services business is an essential component of our North American growth strategy,” said Chris Weston, President and CEO of Direct Energy. “Direct Energy Services is already a leader in the Canadian home protection plan market, and the acquisition of HWA will accelerate Direct Energy’s access to the US market and its huge growth potential.”

“Adding HWA’s capabilities will position Direct Energy to become the first high-quality, national home services player offering dependable, peace-of-mind home protection. American homeowners will be able to rest easy knowing their major appliances are covered 24 hours a day,” said Eddy Collier, President of Direct Energy Services. “What’s more, the acquisition of an established nationwide home warranty provider brings infrastructure for significant cross-sell opportunities with our residential energy customer base.”

The transaction is subject to regulatory approval and customary closing conditions. It is expected to close during the first quarter of 2012.

For more information visit www.hwaHomeWarranty.com or www.directenergy.com.

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