Australia-based Infigen Energy has agreed to sell its U.S. solar development pipeline to a global solar energy company for $37.9 million, subject to certain working capital-related adjustments.
On closing the transaction, Infigen will receive approximately $8.8 million, with the balance receivable in November. The transaction is subject to customary closing conditions for a transaction of this nature and is expected to close by August.
The sale terms include an earn-out structure and other conditional payments pursuant to which Infigen may receive up to an additional $30 million. Infigen's eligibility to receive any additional cash consideration is primarily dependent upon various projects in the development pipeline securing power purchase agreements (PPAs) that allow for the projects' commercial operation date to be achieved prior to Dec. 31, 2016.
Any contingent consideration payable to Infigen is primarily payable on a milestone basis, with PPA execution, notice to proceed with construction and the commercial operation date being key milestones.
Greentech Capital Advisors and Stoel Rives LLP are advising Infigen on this transaction.
‘We are delighted with the success of our U.S. solar development activities, and we appreciate the professional and dedicated efforts of the U.S. development team and support staff that have contributed to delivering this result in just over three years," says Miles George, managing director of Infigen.