Artificial intelligence-driven energy storage company Stem Inc has acquired solar asset management software provider AlsoEnergy for US$695 million.
With 32.5GW of solar projects under management in more than 50 countries, Colorado-based AlsoEnergy contracts with stakeholders such as developers, asset owners, operations and maintenance (O&M) companies, commercial customers and utilities.
The deal will combine Stem Inc’s energy storage optimisation capabilities with AlsoEnergy’s solar asset performance monitoring and control software to provide a “one-stop-shop solution” for renewables projects, the companies said.
San Francisco-headquartered Stem will offer its energy storage solutions to AlsoEnergy’s existing front-of-meter and commercial and industrial (C&I) customers, which generally have limited storage attachment to their solar assets.
The companies also touted the “significant opportunities” to cross-sell as only 30% of AlsoEnergy’s customers are clients of Stem.
“Combining our business with Stem will unlock tremendous value for customers as they increasingly focus on integrating solar and energy storage assets to optimise financial performance,” said AlsoEnergy CEO Robert Schaefer.
Expected to close in Q1 2022, the deal will see Stem buy AlsoEnergy for an aggregate purchase price of US$695 million, consisting of approximately 75% in cash and around 25% in Stem common stock.
Stem went public earlier this year, listing on the New York Stock Exchange through a special purpose acquisition company merger that was completed in April.
Reporting its Q3 results last month, Stem posted revenues for the quarter of US$39.8 million, up 334% year-on-year, with the company benefitting from increased adoption of its AI-driven analytics platform Athena.
Through the combination of Athena and AlsoEnergy’s PowerTrack platform, the combined company will aim to further enhance future software development and performance.
In a joint press release, Stem and AlsoEnergy said the transaction will see their customers benefit from a “single, cohesive view” to manage and optimise their renewable and storage assets.
AlsoEnergy previously expanded its operations in 2018 through mergers with both utility-scale solar monitoring firm skytron energy and data analytics provider Locus Energy.