Stem, Inc., a global leader in artificial intelligence (AI)-driven clean energy storage services, announced that it has completed its previously announced business combination with Star Peak Energy Transition Corp. (“Star Peak”).
The transaction was unanimously approved by Star Peak’s Board of Directors and was approved at a special meeting of Star Peak stockholders on April 27, 2021. In connection with the closing, Star Peak changed its name to Stem, Inc. (“Stem” or the “Company”). The ticker symbols for the common stock and warrants of Stem will change from “STPK” and “STPK.WS” to “STEM” and “STEM.WS” and will begin trading as such on the New York Stock Exchange on April 29, 2021.
John Carrington, Chief Executive Officer of Stem, commented, “We are excited to complete this business combination, which will accelerate the next phase of Stem’s growth and further extend our leadership position in AI-driven clean energy storage systems. We continue to benefit from strong, sustainable macro tailwinds as the world deepens its commitment to de-carbonization. Our experience, robust service offerings and industry-leading software, AthenaTM, continue to differentiate Stem in this rapidly growing market, providing our customers enhanced savings, reliability, and sustainability. We appreciate the invaluable collaboration from Star Peak to make this transaction a success, and look forward to their ongoing support as we deliver value to Stem stakeholders.”
Michael Morgan, Chairman of Star Peak and Director of Stem, commented, “We are proud to complete the combination of Star Peak and Stem, establishing Stem as the first pure-play smart energy storage company to go public in the U.S. We are more confident than ever in Stem’s significant value, offering investors a unique ESG opportunity to invest in a pure play clean energy company that’s helping to revolutionize the electric grid. I look forward to continued partnership with John and the world-class Stem team as we drive further growth and success over the long-term.”
Bill Bush, Chief Financial Officer of Stem, commented, “With over $500 million of cash on the balance sheet, zero debt and a new public platform, we are now armed with the capital that will help propel Stem’s product, capabilities and market reach to the next level. We remain well positioned for significant visible growth, including a more than four-fold expected annual increase in our 2021 revenue, 100% of which is covered by our contracted backlog.”
The transaction is primarily comprised of $383 million of cash from Star Peak’s former trust account and $225 million of cash from a private investment in public equity (PIPE), not including transaction fees. The PIPE is anchored by investors including funds and accounts managed by BlackRock, Van Eck Associates Corporation, Adage Capital Management, L.P., Electron Capital Partners, and Senator Investment Group. Stem will use the proceeds to fund the company’s planned growth, advance its Athena™ software platform, and repay all outstanding debts. All Stem shareholders have rolled 100% of their equity holdings into the new public company.
Stem’s legacy senior management team will continue to lead the now combined company, including John Carrington (Chief Executive Officer), Bill Bush (Chief Financial Officer), Larsh Johnson (Chief Technology Officer), Prakesh Patel (Chief Strategy Officer), Mark Triplett (Chief Operating Officer), Alan Russo (Chief Revenue Officer) and Sylvia Lan (Vice President, Human Resources).
Stem’s Board of Directors will be comprised of eight (8) members, seven (7) of whom are “independent directors” as defined in the NYSE listing standards and applicable U.S. Securities and Exchange Commission (“SEC”) rules. The Board of Directors will be led by Chairman, Mr. David Buzby and will also include John Carrington, CEO of Stem.
A more detailed description of the transaction can be found in the definitive proxy statement filed by Star Peak with the SEC on March 30, 2021.
Stem, Inc. | http://www.stem.com
About Star Peak Energy Transition Corp | http://www.starpeakcorp.com