Funding and M&A Roundup: Tesseract Raises $78 Million in Funding

XL Fleet Acquires Rooftop Solar Provider Spruce Power

September 14, 2022


From: Mercom Capital Group

Tesseract, a vertically integrated company that purchases energy from generators at fixed prices and then offers it to consumers, raised $78 million to buy and build selected renewable energy assets and support the development of its platform. The round was co-led by Balderton and Lakestar, with additional participation from Accel, Creandum, Lowercarbon, Ribbit, and BoxGroup, along with several strategic angels.

Electric powertrain solutions provider, XL Fleet, announced the acquisition  of Spruce Power, an owner and operator of residential rooftop solar systems in the U.S. The acquisition, managed by HPS Investment Partners was closed for a cash consideration of $58 million and the assumption of $542 million of debt. Through leveraging the Spruce Power platform, XL Fleet intends to grow its revenues by providing subscription-based solutions for rooftop solar, energy storage, EV charging, and other energy-related products to homeowners and small businesses.

Catalyst Power Holdings, a provider of clean energy solutions for the commercial and industrial sector, acquired the assets of Northeast Expense Reduction Services, a New York-based energy advisor. The company said the acquisition would help deepen its role in Central and Western New York State’s energy transition, allowing it to expand the objective of helping its commercial and industrial customers decarbonize their electricity consumption.

Pathway Power, renewable energy and battery storage developer, announced a $36 million investment from Forest Road Renewables, a climate-focused infrastructure platform within The Forest Road Company. The funding will scale the company’s portfolio of clean energy projects to deliver over 2 GW across North America.

Ambient Photonics, a California-based low-light solar photovoltaic cells developer, has secured $17.5 million in debt financing for its U.S. solar manufacturing facility. The financing, provided by  Silicon Valley Bank and Trinity Capital, added to the company’s previously announced equity investment of $31 million, raising the combined equity and debt funding to $48.5 million. This financing further supports Ambient’s plan to open the world’s largest low-light solar cell production facility, based in the U.S., to scale low-cost, high-power solar cells to the mass IoT market.

BBoxx, a designer, manufacturer, distributor, and financer of plug & play solar systems, has acquired PEG Africa, a provider of distributed energy in West Africa. This deal gives Bboxx access to ten new markets, including Senegal, Ivory Coast, Ghana, and Mali. Financials have not been disclosed. Lions Head Global Partners advised Bboxx.

FotoNotes, a mobile software company, has acquired SiteCapture, a field operations platform used in the solar industry. FotoNotes also announced a name change for the combined entity to SiteCapture, to better represent the company’s product offering. With this acquisition, SiteCapture will offer the most comprehensive, purpose-built mobile field operations software for the Solar, Residential Real Estate, and Property Management industries. Kamal Shah, founder and CEO of FotoNotes will continue as CEO of SiteCapture, while Christopher Doyle, founder of SiteCapture, has joined the board of directors.

Ørsted, a Danish power company, secured investor commitment for an aggregate amount of nominal €900 million (~$889.91 million) and £950 million (~$1.09 billion) through the issuance of green senior bonds. The financing will fund the company’s global build-out of renewable energy and its green growth ambition of reaching approximately 50 GW of installed capacity by 2030. Ørsted has completed the pricing of the new unsecured green senior bonds, a £375 million (~$428.56 million) fixed-rate tranche with maturity in 2034, and a £575 million (~$656.98 million) fixed-rate tranche with maturity in 2042. All bonds are issued as green bonds per Ørsted’s green finance framework.

Prime Infra-led Ahunan Power agreed to acquire a majority stake in renewable energy developer Olympia Violago Water and Power (OVWPI). OVWPI is in the pre-development stage of the 500-megawatt (MW) Wawa Pumped Storage Hydropower (PSH) Project in Rizal province, with construction targeted to start in 2023. The agreement increases the energy storage capacity of Prime Infra’s renewable energy portfolio by 6,000 MWh/day, defined by a maximum continuous generation at 500MW for 12 hours.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

Read last week’s funding roundup.


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