- Press Releases
December 16 (Renewables Now) - Artificial intelligence (AI)-driven energy storage company Stem Inc (NYSE:STEM) will take over solar asset management software developer Also Energy Holdings Inc for about USD 695 million (EUR 617m) on a cash-free, debt-free basis.
The acquisition is expected to boost Stem’s recurring software revenue, increase margins and grow its assets under management and international presence.
Boulder, Colorado-based AlsoEnergy runs software, grid edge monitoring, controls and services businesses that generated total revenue of about USD 49 million in 2020. The firm services various stakeholders in the solar ecosystem such as developers, asset owners, operations and maintenance (O&M) contractors, commercial customers and utilities. It has 32.5 GW of solar assets under management (AUM) across over 50 countries. Of these, only a minimal amount has energy storage attached at this point.
“The combined company will deliver an AI-driven software offering that we expect will simplify our customers’ asset management, boost their project returns, and accelerate our own growth trajectory. Importantly, this acquisition is expected to be immediately accretive to both gross margin and EBITDA before realizing any commercial synergies, which we believe are significant and compelling,” said John Carrington, CEO of Stem.
AlsoEnergy’s own CEO, Robert Schaefer, in turn, commented that the tie-up will create a single vendor for software services across the solar and storage landscape.
The transaction is awaiting regulatory clearance and is seen to close in the first quarter of next year. Stem will cover 75% of the total consideration with cash and the balance through the issuance of common stock.
(USD 1.0 = EUR 0.888)