Solar Power Company Altus Power Lands SPAC Deal With CBRE Group: What Investors Should Know

A leading solar power and energy storage company is going public with a SPAC partner that could help cross-sell its products across the country.

The SPAC Deal: Altus Power announced a SPAC merger with CBRE Acquisition Holdings Inc CBAH, a SPAC from CBRE Group Inc CBRE. The merger values the company at a pre money equity value of $900 million.

A $275 million PIPE is anchored by CBRE Group and includes investments from Blackstone and ValueAct Capital.

CBAH public shareholders will own 26% of the company after the merger. The new company will trade on the New York Stock Exchange as ticker "AMPS" after the merger.

About Altus Power: With a mission to be a pure-play ESG (environmental, social and governance) company, Altus Power is one of the leading clean energy companies with solar power and energy storage solutions.

The company operates in solar power, building energy consumption data, battery storage and electric vehicle charging.

Altus has operations spanning across the country from Vermont to Hawaii, according to the press release. The company has 410 megawatts of solar power in its portfolio and a pipeline of over 900 megawatts of solar power.

Growth Ahead: CBRE is the world’s largest commercial real estate services company serving 90 of the Fortune 100 companies and has 7 billion square feet of commercial real estate under management.

The deal is expected to help boost Altus' cross-sell opportunities with CBRE.

“We are very excited about the opportunity to supply real estate investors and occupiers — many of whom will come to us through our relationship with CBRE — with clean energy savings and sustainability benefits using a data-driven approach to design and build onsite solar generation facilities, energy storage and EV charging for vehicles and fleets,” Altus Power CEO Lars Norell said.

Financials: Altus is forecasting revenue to grow at a compounded annual growth rate of 66% from fiscal 2020 to fiscal 2024. The company had revenue of $45 million in fiscal 2020 and is projecting revenue of $74 million in fiscal 2021 and $134 million in fiscal 2022.

Altus has a positive EBITDA with $25 million in fiscal 2020 and $38 million projected in fiscal 2021.

Altus has long-term contracted recurring revenue which helps power its positive free cash flow, according to its presentation.

CBAH Price Action: Shares of CBAH are up 1.83 to $10.03 on Tuesday at publication.

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