Stem, a US-based artificial intelligence (AI)-driven energy storage software and services provider, has agreed to acquire Also Energy (AlsoEnergy), a solar asset management software firm, for $695m.

AlsoEnergy is being acquired from Clairvest Equity Partners V, a partnership managed by Clairvest Group, and other shareholders.

As per the terms of the deal, the consideration will be made up of around 75% in cash and the remaining portion in the form of Stem’s shares.

Based in Colorado, AlsoEnergy provides solutions for control, monitoring, and management of solar photovoltaic (PV) and solar plus storage assets.

The company’s solutions include integrated software and hardware systems for data acquisition system (DAS), supervisory control and data acquisition (SCADA), and power plant control. Its services are said to cover the project lifecycle from system design and engineering to installation, commissioning, and support.

AlsoEnergy, which was founded in 2007, caters to 32.5GW of solar assets under management (AUM) located in more than 50 countries.

Clairvest energy transition practice lead Angus Cole said: “AlsoEnergy grew to market leadership in the C&I segment and successfully entered the utility-scale segment to become the largest solar monitoring software company.

“This success was fuelled by a passionate management team with a clear entrepreneurial vision.”

According to Stem, the deal combines its capabilities in storage optimisation with AlsoEnergy’s solar asset performance monitoring and control software to offer a one-stop-shop solution for renewable energy projects.

Additionally, Stem will provide its smart energy storage solutions to AlsoEnergy’s existing commercial and industrial and front-of-meter customers, who usually have limited storage attachment to their solar assets.

Stem CEO John Carrington said: “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.”

The deal, which is subject to receipt of regulatory approvals and other customary closing conditions, is anticipated to close in Q1 2022.