US Stem lands USD 695m deal for solar software firm Also Energy

US intelligent energy storage company Stem Inc (NYSE:STEM) announced on Thursday an agreement to take over privately-held solar asset management software provider Also Energy Holdings Inc, backed by Canada's Clairvest Group Inc (TSX:CVG), in a cash-and-stock deal worth USD 695 million (EUR 613.1m).

Under the terms, Stem will settle 75% of the total consideration in cash. It will issue new stock to cover the remaining 25% of the deal amount.

Founded in 2007, the Boulder, Colorado-based target company offers software, grid edge monitoring, controls and services for solar photovoltaic (PV) and solar-plus-storage assets. It manages a total capacity of 32.5 GW of solar assets in more than 50 countries. Also Energy's operations booked revenue of USD 49 million in 2020, with a 60% gross margin.

The transaction requires US antitrust approval. It is expected to close in the first quarter of 2022.

Clairvest, which invested in Also Energy in 2017, said separately that it stands to receive proceeds of USD 350 million from the sale.

The acquisition is seen to expand Stem's smart energy storage solutions to Also Energy’s front-of-meter, commercial and industrial customers.

(USD 1 = EUR 0.882)

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