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8point3 Energy strikes deal to be acquired by Capital Dynamics

8point3 Energy Partners LP, the yieldco created by rival solar companies First Solar Inc. and SunPower Corp., agreed to be bought by asset manager Capital Dynamics Inc. in a deal that values 8point3 Energy at about $1.7 billion.

First Solar and SunPower said in April 2017 that they were separately considering selling their stakes in the joint venture just two years after it was created to hold and operate solar power plants.

The deal with Capital Dynamics, which was announced after markets closed Feb. 5, calls for 8point3 Energy's sponsors and class A shareholders to receive $12.35 per share or unit in cash, plus a portion of cash generated through closing. 8point3 Energy shares closed at $13.83 on Feb. 5, down 3.22%.

"With our extensive asset management capabilities and financing expertise, we have been able to achieve terms that we expect to be received positively by shareholders, while meeting our long-term investment objectives," John Breckenridge, head of the clean energy infrastructure business at Capital Dynamics, said in a news release.

Capital Dynamics has $15 billion in assets under management. The company's clean energy infrastructure team invested in approximately 1,100 MW of solar projects in 2017 and has a renewable energy portfolio totaling 2,200 MW.

8point3 Energy's power plant portfolio totaled 946 MW at the end of November 2017, it said in a Form 10-K, mostly in California but with one site in Colorado and two in Maryland. All of the solar facilities have long-term offtake agreements, mostly with utilities. It also has a few solar facilities supplying commercial and industrial facilities, including two Macy's Inc. department stores.

The deal is expected to close in the second or third quarter of 2018.

8point3 also released earnings results, reporting fourth-quarter 2017 revenue of $15.8 million, net income of $8.8 million and adjusted EBITDA of $26.2 million. It offered first-quarter 2018 guidance of $9 million to $10 million in revenues, net income of $1.5 million to $3.5 million and adjusted EBITDA of $7.5 million to $9.5 million.