Next Big Energy, a unit of NV Energy, announced Wednesday it would acquire Duke Energy for $1.6 billion, bringing total investment in the energy business to more than $1 billion.
NV Energy plans to pay $1,100 per share for the transaction, or about 30 cents a share.
The acquisition gives NV Energy an additional stake in Duke Energy, which had an ownership stake of about 30 percent of its shares.
It also helps NV Energy diversify its energy portfolio and expand its pipeline of energy-related technology.
Duke Energy had been looking to expand into the energy industry.
The company has said it wants to be in the $1 trillion-plus energy market by 2035.NV Energy shares rose 7.4 percent to $23.26.
The deal closes a gap of $1 million or $1 per share, with the Dow Jones Industrial Average losing 0.3 percent to 23,636.