Scale Microgrids Acquired by EQT in Strategic Transition Infrastructure Play
Deal News | Jan 09, 2025 | EQT
EQT, a private equity firm known for its investments in sustainable infrastructure, announced its acquisition of Scale Microgrids, a vertically integrated developer and operator of microgrids and distributed energy resources in North America. This acquisition, part of EQT's Transition Infrastructure strategy, represents the firm's first North American investment in this sector which is designed to accelerate the transition to clean energy and support a more circular economy. Scale Microgrids has built a notable portfolio, including 250 MW of operating assets and a pipeline of 2.5 GWs, utilizing technologies such as solar, battery storage, and combined heat and power. The transaction allows EQT to leverage its vast experience and resources to expand Scale's operations and deliver on its vision of distributed energy. Legal advisement in this deal was provided by Weil, Gotshal & Manges, with financial advisory by Guggenheim Securities for EQT, and Latham & Watkins, Nomura Greentech, and Truist Securities for Scale Microgrids. The transaction is currently awaiting customary conditions and approvals.
Sectors
- Renewable Energy
- Private Equity & Investment Management
- Infrastructure
Geography
- United States – Scale Microgrids is headquartered in Ridgewood, New Jersey, and operates its distributed energy projects across North America.
Industry
- Renewable Energy – Scale Microgrids is involved in renewable energy through its microgrid solutions, utilizing technologies such as solar and battery storage.
- Private Equity & Investment Management – EQT is a global investment organization investing in clean and sustainable infrastructure assets as part of its Transition Infrastructure strategy.
- Infrastructure – The acquisition by EQT involves infrastructure assets in microgrids and distributed energy systems designed for various sectors including commercial and industrial uses.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| EQT | Bidding Company | Company | A global investment firm leading the acquisition of Scale Microgrids as part of its Transition Infrastructure strategy. |
| Scale Microgrids | Target Company | Company | A vertically integrated energy company specializing in microgrids and distributed energy solutions in North America. |
| Warburg Pincus | Selling Company | Company | An investment firm and one of the existing shareholders of Scale Microgrids, selling its stake in the company. |
| Weil, Gotshal & Manges | Legal Advisor | Company | Provided legal advisement to EQT during the acquisition transaction. |
| Guggenheim Securities | Financial Advisor | Company | Provided financial advisory services to EQT in the acquisition of Scale Microgrids. |
| Latham & Watkins | Legal Advisor | Company | Provided legal advisement to Scale Microgrids in the acquisition. |
| Nomura Greentech | Financial Advisor | Company | Provided financial advisory services to Scale Microgrids. |
| Truist Securities | Financial Advisor | Company | Provided financial advisory services to Scale Microgrids alongside Nomura Greentech. |