CenterPoint Energy and Vectren Corp. say they will merge into an energy delivery, infrastructure and services company serving more than 7 million customers across the United States.

Under terms of the agreement, which have been approved by both CenterPoint Energy's and Vectren's Boards of Directors, Vectren shareholders will receive $72 in cash for each share of Vectren common stock. CenterPoint Energy will also assume all outstanding Vectren net debt. The price is above Vectren's closing share price of $65 on April 20.

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.

Based in Houston, CenterPoint Energy has natural gas operations in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas, serving more than 3.4 million customers. The company also delivers electricity to more than 2.4 million customers in the greater Houston area. CenterPoint Energy's natural gas sales and services business serves more than 100,000 customers in 33 states. The company employs nearly 8,000.

Based in Evansville, Indiana, Vectren provides natural gas to more than 1 million customers in Indiana and Ohio, and electricity to 145,000 customers in Indiana. Vectren's non-utility businesses include Infrastructure Services (VISCO), which provides underground pipeline construction, repair and replacement services, and Energy Services (VESCO), which offers performance contracting services and renewable energy project development. Vectren also owns and operates power generation assets in Indiana with a production capacity of 1,248 megawatts. The company employs approximately 5,500.

The merger is expected to close by the first quarter 2019. Until the closing, CenterPoint Energy and Vectren will remain separate companies.