Stem, Inc., a US-based artificial intelligence (AI)-driven energy storage company, has agreed to merge with Star Peak Energy Transition, a publicly-traded special purpose acquisition company (SPAC), in a $1.35 billion deal.

The merger will enable the energy storage company to become a public company.

Following the completion of the deal, the combined firm will operate as Stem and will continue to be listed on the New York Stock Exchange. It will be headed by John Carrington, the present CEO of Stem, Inc.

Established in 2009, Stem offers customers with integrated energy storage systems, long-term recurring software services, and energy market participation via its Athena software platform, which facilitates AI-automated system operations.

Stem is said to help its customers and partners in streamlining energy usage by switching between battery power, onsite generation, and grid power automatically.

Eric Scheyer – CEO of Star Peak Energy Transition said: “Stem is an exceptional investment opportunity.  We completed an extensive due diligence process and view Stem as a market leader in one of the most exciting segments of the clean energy ecosystem.

“The Star Peak team has significant experience investing in the broader energy infrastructure, renewables and technology sectors, and we believe Stem represents a highly compelling opportunity to capitalize on the scarcity of high-quality, public clean energy companies with attractive ESG characteristics, significant scale and visible growth.”

The deal will give $608 million of gross proceeds to Stem.

Subject to shareholders’ approvals of both the firms, certain regulatory approvals, and other customary closing conditions, the deal is likely to be wrapped up in Q1 2021.

John Carrington – CEO of Stem 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.”

  artificial intelligence, California, energy storage, Eric Scheyer, John Carrington, New York, Star Peak Energy Transition, Stem, USA