Stem’s acquisition of AlsoEnergy, a solar asset management software provider, created a one-stop-shop technology service for renewable energy projects. Stem, an artificial intelligence-driven energy storage company, acquired AlsoEnergy from Canadian private equity firm Clairvest Group in February of this year. The value of the stock and cash deal was $695 million – approximately 75 percent cash and 25 percent in Stem common stock.
Smart Renewable Energy
Headquartered in San Francisco, Stem supplies “smart” battery storage that maximizes renewable energy. Its customers include Fortune 500 corporate energy users, project developers and installers, and utilities along with independent power producers. Stem’s Athena software uses artificial intelligence and machine learning to automatically switch between battery power, onsite generation and grid power. Stem became the first publicly-traded “pure-play” smart energy storage company when it debuted on the New York Stock Exchange in 2021.
Boulder, Colo.-based AlsoEnergy, which offers solar asset performance monitoring and control software, contracts with solar power owners and operators, including developers, asset owners, operations and maintenance contractors, commercial customers and utilities. It manages approximately 32.5 GW of solar assets.
Embedded Growth Opportunities
The deal provides significant opportunities to cross-sell and leverage the customer bases of each and expands the combined company’s geographic footprint to more than 50 countries. Currently, only 30 percent of AlsoEnergy’s customers are Stem clients. “AlsoEnergy’s existing customers now have the ability to consider energy storage for existing or planned solar sites rather than rely on one software and service platform to maximize the total asset value. With AlsoEnergy, Stem has data and access to a tremendous amount of solar and storage assets, robust software, and unmatched services for supporting the optimization of solar and storage projects,” John Carrington, Stem’s CEO, said in a blog post on the company’s web site when the deal was initially announced in December.
For more Deals of the Year coverage, see Mergers and Acquisitions Reveals the 2022 Middle-Market Deals of the Year.