The transaction is expected to enable Stem to expand globally and continue advancing its Athena software platform
Stem, a US-based artificial intelligence (AI)-driven clean energy storage firm has announced a merger with Star Peak Energy Transition (Star Peak) in a deal worth $1.35bn.
The combined company will be named Stem and will be led by the company’s CEO John Carrington.
Star Peak is a blank check company incorporated in Delaware.
Founded in 2009, Stem is an AI-driven energy storage systems, which generates revenue by providing integrated energy storage systems, software services and energy market participation through its software platform Athena.
Stem enables its customers to optimise energy usage by automatically switching between battery power, onsite generation and grid power.
The company’s network helps reduce grid intermittency issues and helps in promoting the adoption of renewable energy to replace fossil fuels.
The firm claims to have commissioned over 600MWh of storage capacity since 2014. In addition, more than 900 systems operating or contracted with Stem’s Athena across 200 cities representing about 1GWh of storage capacity.
Further, it claims to have 75% market share in California’s commercial and industrial storage market, the largest storage market in the US.
Merger to generate $608m in proceeds to Stem
The transaction, which is expected to close in the first quarter of 2021, will generate about $608m in proceeds to Stem for investments in smart grid technology.
It is subject to other customary closing conditions, including the receipt of certain regulatory approvals.
Stem CEO John Carrington said: “This transaction is transformative for us and we expect it to significantly accelerate our growth. Stem is a market leader and our Athena™ software platform is proven in the U.S., Japan and Canadian markets, and this merger will enable expansion to several additional global markets.
“Our systems deliver value to our customers by lowering energy costs, enhancing renewable returns, and meeting ESG and sustainability goals, while increasing grid reliability. We are excited to partner with the Star Peak team and share a collective vision.
“The balance sheet strength of the combined company will empower Stem to expand its technological leadership and geographic reach. We look forward to creating long-term value for our customers, employees and shareholders as a public company.”