EQT Acquires Scale Microgrids to Amplify Transition to Distributed Energy

Deal News | Jan 09, 2025 | PR Newswire Cision EQT

EQT Transition Infrastructure has announced the acquisition of Scale Microgrids, a prominent developer and operator of microgrid and distributed energy resources across North America, with the transaction backed by EQT's own capital. The move marks EQT's first North American investment under their recently launched Transition Infrastructure strategy, designed to support energy businesses transitioning to cleaner technologies. Scale Microgrids, headquartered in Ridgewood, New Jersey, manages a significant portfolio of 250 MWs with an additional 2.5 GWs of projects in the pipeline. The investment will enable Scale Microgrids to bolster its project execution and commercial capabilities, aiming to become a leader in vertically integrated energy services. This acquisition aligns with EQT's inaugural investment in ju:niz Energy in December 2024, further emphasizing the company's commitment toward a decarbonized energy future. EQT's strategic plan includes significant investments in Scale's infrastructure to enhance its market position and support its growth ambitions. The transaction remains subject to standard approval conditions. Legal and financial guidance was provided by Weil, Gotshal & Manges, Guggenheim Securities, Latham & Watkins, Nomura Greentech, and Truist Securities.

Sectors

  • Renewable Energy
  • Private Equity

Geography

  • North America – Scale Microgrids operates across North America and EQT's investment marks its first in this region under its new strategy.
  • United States – Scale Microgrids is headquartered in Ridgewood, New Jersey, and primarily manages its energy portfolio within the U.S.

Industry

  • Renewable Energy – The acquisition is focused on distributed energy and microgrid solutions, which are integral to the renewable energy sector.
  • Private Equity – EQT, a major private equity firm, is executing its strategy of investing in infrastructure enabling clean energy transition.

Financials

    Participants

    NameRoleTypeDescription
    EQT Transition InfrastructureAcquirerCompanyA branch of the private equity firm EQT, focused on investments in infrastructure supporting clean energy transitions.
    Scale MicrogridsTargetCompanyA vertically integrated energy company specializing in microgrids and distributed energy resources in North America.
    Warburg PincusSelling CompanyCompanyA global private equity firm and previous major shareholder of Scale Microgrids.
    Weil, Gotshal & MangesLegal AdvisorCompanyLegal advisor to EQT in the acquisition transaction.
    Guggenheim SecuritiesFinancial AdvisorCompanyFinancial advisor to EQT in the acquisition transaction.
    Latham & WatkinsLegal AdvisorCompanyLegal advisor to Scale Microgrids in the acquisition transaction.
    Nomura GreentechFinancial AdvisorCompanyFinancial advisor to Scale Microgrids in the acquisition transaction.
    Truist SecuritiesFinancial AdvisorCompanyFinancial advisor to Scale Microgrids in the acquisition transaction.