KEY POINTS
- TPG Rise Climate is negotiating a potential acquisition of Altus Power.
- Altus shares surged 23 percent on news of the acquisition talks.
- Growing AI and data center demand boost interest in clean energy.
Buyout firm TPG’s climate-focused investment arm, TPG Rise Climate, is in advanced talks to acquire Altus Power, a leading solar power provider for commercial properties.
Sources familiar with the matter revealed Monday that the deal could be finalized in the coming weeks, though no agreement has been reached yet.
Altus Power, based in Stamford, Connecticut, has been exploring sale options since October.
According to Reuters, the company’s shares surged over 23 percent following news of the acquisition discussions, giving it a market valuation of approximately $650 million. Altus also carries net debt of $1.1 billion as of September.
Renewable energy in high demand amid AI boom
Altus Power has seen increased interest due to surging demand for clean energy driven by the boom in artificial intelligence and data centers.
Its portfolio, which generates around 1 gigawatt of power, includes solar installations, energy storage, and vehicle charging facilities.
Founded in 2009, Altus faced challenges after going public through a $1.6 billion SPAC deal in 2021 but has recently rebounded.
For the quarter ending in September, Altus reported a 30 percent revenue increase to $58.7 million and a 26 percent rise in net profit to $8.6 million.
Major investors backing Altus Power
Altus Power’s largest shareholder, CBRE Group, holds a 15.38 percent stake, while Blackstone’s energy arm retains a 13.2 percent stake.
These stakeholders have played key roles in the company’s growth, with Blackstone providing $350 million in debt financing and $300 million in preferred equity during the SPAC merger.
If the acquisition proceeds, it will enhance TPG Rise Climate’s $19 billion portfolio, which focuses on companies driving social and environmental impact.
Altus Power’s success in securing new commercial clients and its renewable energy focus make it an attractive prospect in a competitive market.
As talks progress, Altus Power remains a critical player in meeting the world’s growing demand for clean energy solutions, positioning itself as a key asset for TPG.
