Stem, Inc. has entered into a definitive agreement to acquire 100% of the share capital of AlsoEnergy Holdings, Inc. The transaction is structured as a combination of cash and common stock, effectively integrating two software-focused leaders in the renewable energy sector. The acquisition combines Stem’s strength in AI-driven energy storage optimization with AlsoEnergy’s leadership in solar monitoring and control. This "one-stop-shop" strategy allows the combined entity to offer a unified software solution across the entire renewable energy project lifecycle. For Stem, the deal provides a significant opportunity to cross-sell storage optimization software to AlsoEnergy’s extensive base of front-of-meter and commercial solar customers. The integration is expected to create a highly defensible platform capable of managing the full spectrum of solar and storage assets, thereby driving increased operational efficiency and project profitability for asset owners. The deal accelerates the transition to fully integrated grid-edge software systems, reinforcing the competitive necessity for comprehensive, AI-supported renewable asset management.

ALSOENERGY, which reported an EBITDA margin of LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (13.8x).

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