(Reuters) -Buyout firm TPG’s climate investment arm will acquire Altus Power for $2.2 billion in an all-cash deal, including debt, the provider of solar power to commercial property owners and residential homes said on Thursday.
Clean energy providers such as Altus have become an attractive option for infrastructure investors, thanks to growing demand for power from manufacturers and data centers amid an artificial intelligence boom.
The U.S. Energy Information Administration had said in November it expects power consumption in the country to rise to record highs in 2025.
Reuters reported in December that TPG Rise Climate was in talks to acquire Altus — one of the largest owners of commercial-scale solar plants in the U.S.
The company said TPG Rise Climate Transition Infrastructure would acquire its Class A common shares for $5 per share, a 66% premium to its stock’s closing price on Oct. 15, the last trading day before the company said it would review strategic alternatives, including a potential sale.
Altus shares were trading at $4.90 in premarket trading, compared with their closing price of $3.83 on Wednesday.
Stamford, Connecticut-based Altus said stockholders representing about 40% of its Class A common stock, including funds managed by Blackstone Credit and Insurance and a subsidiary of CBRE Group, are in favor of the transaction.
TPG’s The Rise Fund, which includes TPG Rise Climate, manages $19 billion in assets focused on backing companies that aim to drive social and environmental impact, according to its website.
The acquisition is expected to close in the second quarter.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Savio D’Souza and Anil D’Silva and Saumyadeb Chakrabarty)
