Stem Gaining Capital to Expand Energy Storage Reach in $608M Combination

on December 7, 2020

Energy storage firm Stem is taking on new owners and liquidity as it aims for greater share in the growing battery storage gains market of the coming decade.

Stem announced that it was combining with Star Peak Energy Transition Corp., a blank check company created to effect a merger, in a transaction estimated at about $608 million. Star Peak includes investments from funds managed by private equity firms such as BlackRock, Adage Capital Management, Electron Capital Partners and Senator Investment Group.

Once the deal closes as expected in the first quarter of 2021, the equity value of the new formation should be close to $1.35 billion, according to release. The cash influx will enable Stem to capitalize on growth opportunities, including advancing its Athena software platform.

“This transaction is transformative for us and we expect it to significantly accelerate our growth,” John Carrington, Stem CEO, said. “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.”

Founded in 2009, Stem has deployed more than 600 MWh of energy storage capacity commissioned in the past six years. The Athena system is contracted or operating in more than 900 systems in 200 cities, according to the company y.

Stem offers an artificial intelligence (AI) software platform for battery storage systems. Its products have operated globally with more than 40 utilities.

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Fractal Energy Storage ConsultantsStem Gaining Capital to Expand Energy Storage Reach in $608M Combination