Global infrastructure investment management company I Squared Capital has signed an agreement to acquire energy company Viridian from Arcapita.

wind power

With more than 480 employees, Viridian operates across Northern Ireland and Ireland.

The firm owns 747MW of gas-fired combined-cycle generation projects as well as 225MW of onshore wind assets in operation and construction.

Viridian expects to increase installed wind power generation capacity from current 793MW to 1,000MW following commissioning of the projects which are currently under construction and in-development.

I Squared Capital partner Gautam Bhandari said: "Viridian has an attractive mix of diversified businesses with significant overlap with our areas of expertise. We intend to grow Viridian with the leadership team to achieve its full potential.

"The acquisition of Viridian is consistent with our strategy of investing in robust growth economies, such as Ireland, and within those economies selecting companies with stable cash flows and a potential to grow the business organically and through bolt-on acquisitions."

According to media sources, the deal is estimated to be around €1bn ($1.12bn).

Viridian CEO Ian Thom said: "We are excited by the opportunity to work with I Squared Capital, which brings a proven track record of successfully operating and helping to expand businesses such as Viridian.

"In addition, the Group’s increased financial strength will enable us to capitalize on the many growth opportunities in our markets, which will benefit our employees and our customers."

Viridian has a 20% share of domestic electricity sales volume, in addition to a 27% share of business electricity sales volume on an all-Ireland basis.

I Squared Capital said it is also planning to strengthen Viridian’s capital position by reducing £145m in existing junior debt with new equity at closing.

The all-cash transaction is planned to be completed during the second quarter of this year.

Image: Viridian expects to increase installed wind power generation capacity to 1,000MW. Photo: courtesy of dan/