Altus Power (AMPS, Financials) shares surged 27.9% to $4.90 as of 12:40 p.m. ET on Thursday after the company announced it has entered into a definitive agreement to be acquired by TPG Rise Climate for $5.00 per share in cash, valuing the company at approximately $2.2 billion, including debt.

Expected to conclude in the second quarter of 2025, the deal will cause Altus Power to delist from the New York Stock Exchange and shift its status to a privately owned corporation.On Oct. 15, 2024, the final trading day before Altus Power declared a strategic alternatives evaluation, the acquisition price stood at a 66% premium over the closing stock price. Approved by the board of directors unanimously, the agreement results from a thorough review meant to maximize shareholder value.Altus Power claims that the purchase would provide the financial means to develop its commercial and Community Solar projects, hence increasing the availability of clean energy to homes and companies. The firm said that TPG's experience in infrastructure investment would improve its capacity to satisfy the growing demand for renewable energy.Agreements supporting the purchase have been signed by stockholders holding forty percent of Altus Power's Class A common shares, including funds controlled by Blackstone Credit and Insurance and a CBRE Group unit. According to the firms, completion is still dependent on shareholder and regulatory approvals; it does not rely on funding circumstances.Following the purchase, Altus Power said it intends to keep its headquarters in Stamford, Connecticut.