(Reuters) -Buyout firm TPG’s climate investment arm will acquire Altus Power in an all-cash deal worth $2.2 billion, including the assumption of debt, the companies said in a statement on Thursday.
The announcement, confirming a Reuters report from December that TPG Rise Climate was in talks to acquire Altus, sent shares in the company up 28% to $4.90 each, on course for the best ever one-day share performance.
As one of the largest owners of commercial-scale solar plants in the United States, the acquisition of Altus is the latest deal involving a power producer. Infrastructure investors have been scooping up such companies due to growing demand for power from manufacturers and data centers amid an artificial intelligence boom.
TPG Rise Climate Transition Infrastructure will acquire Altus’ Class A common shares for $5 per share, according to the statement. This is a 66% premium to Altus’ closing price on October 15, the last trading day before the company said it would review strategic alternatives, including a potential sale.
It is the first deal out of the TPG Rise Climate Transition Infrastructure fund, according to a person familiar with the matter.
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, have committed to vote in favor of the transaction.
“As a private company, Altus Power will be better positioned for continued long-term growth, which we believe will allow us to scale our operations, drive innovation and enhance the value we deliver to our customers,” said Altus Power CEO Gregg Felton.
TPG’s impact platform, which includes TPG Rise Climate and the Rise Funds, manages $25 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, the statement added.
(Reporting by Tanay Dhumal in Bengaluru and David French in New York; Editing by Anil D’Silva, Saumyadeb Chakrabarty and Chris Reese)
