NOVA Infrastructure, an infrastructure investment firm, announced the acquisition of UGE International, a community solar and battery storage company. In May this year, NOVA agreed to acquire approximately 70% of UGE’s shares.
The transaction has now received security holder and regulatory approval. The financial details have not been disclosed.
Blank Rome and Bennett Jones advised NOVA, while Mintz and CP advised UGE in this transaction.
“NOVA committed acquisition capital as well as growth capital to support the expansion of the UGE platform and installed MW,” shared Allison Kingsley, Co-Founder and Partner at NOVA. Founded in 2010, UGE owns, finances, develops, builds, and operates solar and battery storage projects in New York, New Jersey, Maine, California, Pennsylvania, Oregon, Texas, Illinois, Maryland, Virginia, and Massachusetts. UGE currently has a portfolio of more than 12 operating and 81 advanced backlog projects in 11 states.
“Community solar represents a fast-growing segment of the US power generation market with strong regulatory tailwinds supporting UGE’s portfolio of long-lived assets,” said Chris Beall, Co-Founder and Managing Partner at NOVA. “UGE provides customers with attractive electricity rates under long-term contracts that provide strong downside protection for investors. We have identified value-add initiatives that will accelerate growth in the UGE portfolio and drive strong cash flow generation.”
According to Mercom’s recently released 1H and Q2 2024 Solar Funding and M&A report, in the first half of 2024, there were 40 solar M&A transactions, compared to 48 in the first half of 2023. The largest deal was made by Brookfield Asset Management, an asset management firm, along with institutional partners, including Brookfield Renewable and Singapore’s Temasek Holdings.
Earlier this year, Swell Energy, an energy management and grid solutions provider, acquired Renu Energy Solutions, a company that offers customized residential and commercial solar and energy storage solutions. The combination brings together a complementary set of operational and technological capabilities as well as a bi-coastal presence to enable the deployment of Virtual Power Plants (VPPs) in key energy markets.
