After a year full of Special Purpose Acquisition Company (SPAC) mergers, we are set for another, as SPAC company Star Peak Energy Transition Corp announced that it has agreed on a merger deal with Stem Inc.
Stem Inc is a company that provides AI-driven energy storage systems to its customers through its platform, Athena.
The combined company will be named Stem and will be listed on the New York Stock Exchange under its new ticker symbol STEM.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
The deal values the combined company at $1.35bn, or $10 per Star Peak share and provides $608 million of gross proceeds to the company. It includes a $225 million common stock PIPE at $10 per share made up of existing and new investors which include BlackRock, Van Eck Associated and Adage Capital.
CEO of Stem, 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.”
The current Chairman of Star Peak, Mike Morgan, who will join Stem’s board commented: “Stem is a leader in one of the fastest growing markets in clean energy and the first pure play smart energy storage company to go public. Stem and its highly experienced management team perfectly align with Star Peak’s mission to provide growth capital to a market-leading business focused on climate change initiatives, emissions reductions and energy efficiency.”
The deal is expected to close in the first quarter of 2021.
Shares of Star Peak are up 34.19% at $13.50 after closing Thursday’s regular session at $10.06.
PEOPLE WHO READ THIS ALSO VIEWED:
- Sea Limited Stock Surges After License Award
- Trade stocks with eToro
- Learn stock trading strategies