Atlantica expands US renewable portfolio with new acquisition

Published 19/12/2024, 14:02
Atlantica expands US renewable portfolio with new acquisition

LONDON - Atlantica Sustainable Infrastructure plc (NASDAQ:AY), a company specializing in sustainable infrastructure with a market capitalization of $52.28 million, has expanded its development platform in the United States through the acquisition of approximately 1.1 gigawatts (GW) of solar and wind projects. According to InvestingPro analysis, the company's current Fair Value suggests it may be undervalued at current trading levels. The projects, currently under development, are spread across the Midcontinent Independent (LON:IOG) System Operator (MISO) and Southwest Power Pool (NASDAQ:POOL) (SPP) regions, with specific locations in Illinois, Colorado, Mississippi, and Texas.

This acquisition enhances Atlantica's existing portfolio, which previously focused primarily on the California Independent System Operator (CAISO) and MISO regions. The company has been actively developing storage and solar projects in the MISO region over the past few years. With a solid current ratio of 2.2 and strong cash flows sufficient to cover interest payments, InvestingPro data shows Atlantica is well-positioned to manage this expansion. InvestingPro subscribers have access to 8 additional key insights about Atlantica's financial health and growth prospects. With the latest addition, Atlantica's portfolio in the United States now includes around 2 GW of solar and wind projects, alongside 8.5 gigawatt-hours (GWh) of storage capacity.

The acquired platform also brings with it a small yet experienced development team, which is expected to integrate with Atlantica's current team in the U.S. This strategic move aims to bolster the company's ability to capitalize on growth opportunities within the renewable energy sector.

Atlantica's U.S. operations are supported by a workforce of over 300 individuals who manage, operate, and develop a diverse array of assets, including solar, wind, geothermal, and storage facilities.

Atlantica Sustainable Infrastructure plc is known for owning a variety of contracted assets across renewable energy, storage, efficient natural gas, electric transmission, and water sectors in North and South America, as well as selected markets in Europe, the Middle East, and Africa (EMEA).

The financial details of the acquisition have not been disclosed. While the company has demonstrated revenue growth of 7.43% in the last twelve months, with a beta of 1.23 indicating moderate market sensitivity, specific transaction terms remain private. The information presented in this article is based on a press release statement from Atlantica Sustainable Infrastructure plc and financial metrics from InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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