Energy Capital Partners (ECP) has agreed to acquire UK-based renewable energy developer Atlantica Sustainable Infrastructure for $2.55bn.

Atlantica owns diverse assets including renewable energy, storage, efficient natural gas, electric transmission and water resources across the Americas and select EMEA (Europe, the Middle East and Africa] markets.

At the end of March 2024, the company operated renewable energy plants with a combined capacity of 2.2GW. It reported revenues of $242.9m in the first quarter of the year.

Atlantica shareholders will receive $22 in cash for each share they own.

The offer is an 18.9% premium over Atlantica's closing share price on 22 April 2024, the day before speculation about the deal emerged in the media.

Algonquin Power & Utilities Corp and its subsidiary, Liberty (AY Holdings), which collectively hold a 42.2% stake in Atlantica, have pledged their support for the acquisition.

The transaction is the culmination of a thorough strategic review by Atlantica, exploring options for the company's future.

The completion of the acquisition is contingent on shareholder and regulatory approvals.

The parties anticipate finalising the deal by the fourth quarter of 2024 or the early first quarter of 2025.

Atlantica CEO Santiago Seage stated: “We expect to continue executing on our growth strategy as a private company with the support of our new partners.

“ECP has a long track record and expertise in the sustainable infrastructure sector and, together with its global co-investors, will enhance Atlantica’s ability to finance and deliver growth while maintaining our focus on safety, sustainability and value creation.”

ECP partner Andrew Gilbert said: “Atlantica’s employees and management team have a long and impressive track record of maximising value across a complex set of global assets.

“ECP is excited about the opportunity to partner with the company and to support and accelerate its growth.”