mynth
12/2021

ALSOENERGY acquired by STEM

UNITED STATES Software / Data, Analytics & AI EV 500M - 1.5b USD

Context

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 in 2020, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (13.7x).

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Target

AlsoEnergy Holdings, Inc., headquartered in the United States, operates as a prominent provider of solar asset management software, performance analytics, and monitoring solutions globally. The company engineers advanced software and hardware ecosystems encompassing data acquisition systems, supervisory control structures, and comprehensive power plant controls. Its technological infrastructure optimizes the operational efficiency and financial performance of solar photovoltaic and energy storage assets. From a market positioning standpoint, the enterprise is recognized as a global leader managing a robust portfolio of 32.5 gigawatts of solar assets under management spanning over 50 countries. Its distinctive value proposition lies in delivering an end-to-end service offering that covers the entire project lifecycle, from system design to installation, commissioning, and continuous support. The company's business model is anchored in providing a robust Software as a Service platform generating strong recurring revenue streams with highly attractive gross margin profiles, serving a diversified client base of developers, asset owners, commercial customers, and utility operators.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 500M - 1.5b USD

Revenue range: 25M - 50M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ALSOENERGY by STEM are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: alsoenergy

Acquirer: stem