Stem Inc’s (STEM) stock gains on AlsoEnergy acquisition for US$695M - Kalkine Media

December 16, 2021 10:19 AM PST | By Versha Jain
Follow us on Google News:

Highlights

  • Stem, Inc. (NYSE: STEM) announced Thursday it was acquiring AlsoEnergy Holdings Inc. for an aggregate value of US$695 million.
  • The agreement is for a cash and stock transaction where 75% of the total consideration will be in cash and the balance 25% in stocks.
  • The STEM stock jumped nearly 4% on the announcement.

The Stem, Inc. (NYSE: STEM) stock jumped nearly 4% on the announcement early Thursday morning of acquiring AlsoEnergy Holdings Inc. through entering into a definitive agreement. 

Acquisition details:

Stem Inc. will acquire AlsoEnergy in a stock and cash transaction whereby approximately 75% of the total consideration will be in cash, and the balance of 25% will be through STEM Inc.’s common stock. Stem Inc. will purchase the shares of AlsoEnergy for an aggregate of US$695 million.

Stem Inc. has appointed Nomura Greentech as its financial advisor and Gibson, Dunn & Crutcher LLP as legal advisor. Next year, the transaction is expected to close in the first quarter, subject to fulfilling customary closing conditions and regulatory approvals. 

Also Read: Top 8 US vaccine stocks of 2021

The combined capabilities will be a one-place solution shop for renewable energy projects. The transaction will help Stem Inc. improve its storage optimizing capabilities by using the performance monitoring and control software of AlsoEnergy. AlsoEnergy will gain higher visibility through Stem’s customers and network of partners. 

MillBrae, California-based Stem Inc. is a technology company that provides energy storage systems. The company offers its solutions through its proprietary Athena software to industrial, commercial and renewable developers, as well as independent power producers and helps them generate more renewable energy and build resilient grids. 

AlsoEnergy is based in Boulder, Colorado. It supports the solar ecosystem by serving asset owners, developers, operations, and maintenance customers, as well as utility and commercial customers.

Also Read: 5 US cybersecurity stocks to watch in 2022

Stem, Inc. (STEM) is acquiring AlsoEnergy for US$695 million

Also Read: Top 5 US bank stocks to watch amid Fed’s tapering of asset purchases

Financials:

For the quarter ended September 30, 2021, Stem Inc. posted a revenue of US$39.8 million, where US$34.88 million came from hardware solutions and US$4.95 from services. 

The software company has made good growth in terms of net income. It booked a net income of US$115.6 million in the September quarter of 2021 compared to a net loss of US$18.79 million in the comparable period a year ago.

Also Read: Best US ETFs that returned over 55% in 2021        

The loss per share diluted was US$0.15 this year in the September quarter versus a loss per share diluted of US$0.47 in the September quarter of 2020. It reported cash and cash equivalents of US$405 million as of September 30, 2021, while that was at US$6.94 million at the end of December 31, 2020. 

Stem Inc. has a market capitalization of US$2.59 billion. Its stock traded in the range of US $51.49 to US$16.00 in the last 52 weeks.

Also Read: Top 5 US Lithium stocks to watch in 2022

Bottom line:

Renewable energy is the need of the hour, and companies engaged in related work may see a glowing future. However, an investor must pay attention to the details and fundamentals before investing in a stock. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies