Stem, a California-based clean energy storage company, has announced that it’s reached a formal agreement to go public by merging with the blank-check firm Star Peak Energy Transition Corp. The merger is expected to hand over more than $600 million in cash to Stem, consisting of $383 million already secured by Star Peak and an additional $225 million to be raised from other investors.

Following the merger, Stem, which is an 11-year-old company, will become publicly-traded on the New York Stock Exchange (NYSE).

Stem provides clean energy storage systems that are used by customers to optimize their energy consumption. The company’s flagship product is an AI-based software tool called Athena that monitors and optimizes energy usage for lower consumption and costs.

Stem was founded in 2009 and has since then grown to become a well-recognized name in the field of energy storage, particularly clean energy, which public market investors have increasingly embraced in recent years.

Since it was founded, Stem has raised nearly $400 million in venture funding from investors including the oil giant Total, Temasek Holdings, the Ontario Teachers’ Pension Plan, and Mithril Capital, a venture firm co-founded by the entrepreneur Peter Thiel.

Now, Stem has gotten additional funding commitments from both its blank-check target Star Peak and other investors including BlackRock, Van Eck Associates, Adage Capital Management, and the Senator Investment Group. The company expects to be valued at $1.35 billion on the public markets upon completion of its merger, delivering exits for its investors and other shareholders.

Stem will trade on the NYSE with the ticker “STEM” following the completion of its merger.

Photo: Stem CEO John Carrington by World Economic Forum is licensed under CC BY-NC-SA 2.0

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