Stem Inc., an artificial intelligence-driven (AI) energy storage software and service company, and Also Energy Holdings Inc., a solar asset management software company, have entered into a definitive agreement whereby Stem will acquire AlsoEnergy in a stock and cash transaction.
Under the terms of the agreement, Stem will acquire, on a cash-free debt-free basis, all the outstanding shares of AlsoEnergy for an aggregate purchase price of $695 million, consisting of approximately 75% of the total consideration in cash and approximately 25% in Stem common stock.
The transaction will combine Stem’s storage optimization capabilities with AlsoEnergy’s solar asset performance monitoring and control software to deliver a one-stop-shop solution for renewable energy projects. In addition, Stem will offer its smart energy storage solutions to AlsoEnergy’s existing front-of-meter, and commercial and industrial customers.
Founded in 2007, AlsoEnergy focuses on performance, analytics, monitoring and control solutions with 32.5 GW of solar assets under management across more than 50 countries. AlsoEnergy contracts with and serves multiple stakeholders in the solar ecosystem, including developers, asset owners, operations and maintenance contractors, commercial customers, and utilities.
“Through this immediately accretive transaction, a combined Stem and AlsoEnergy will bring the unique software, controls and analytics capability to accelerate the energy transition to a renewable, decarbonized future,” remarks John Carrington, CEO of Stem. “As the battery storage and solar industries continue to experience tremendous global growth, developers, asset owners, and utilities will increasingly look to our combined software capabilities to provide a unified platform for energy intelligence that improves project performance.”
“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,” Carrington adds. “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. This acquisition underscores our focus on expanding Stem’s global reach and delivering high margin, market-leading software products to our customers.”
“Combining our business with Stem will unlock tremendous value for customers as they increasingly focus on integrating solar and energy storage assets to optimize financial performance,” says Robert Schaefer, CEO of AlsoEnergy. “The software, access to data, and technical capabilities of our combined companies will bring the next level of control and optimization to AlsoEnergy’s leading monitoring offerings, enabling a single vendor for software services across the solar and storage landscape.”
Through Stem’s AI-driven analytics platform, Athena, and AlsoEnergy’s PowerTrack platform, the combined company will enhance future software development and performance.
The transaction is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close in the first quarter of 2022.