Constellation Energy Stock Soars on $26.6B Deal To Buy Rival Energy Producer Calpine | Global News Avenue

Constellation Energy (CEG) shares surged on Friday after the company agreed to acquire private energy company Calpine for $26.6 billion in a deal it said would create the largest clean energy provider in the United States.

The move expands Constellation’s foothold in Texas and California, as well as Calpine’s natural gas and renewable energy portfolio in the Northeast. Constellation expects post-merger adjusted revenue to increase by more than $2 billion free cash flow $2 per year Earnings per share (EPS) After 2026.

The cash-and-stock transaction is valued at $16.4 billion, including $4.5 billion in cash and 50 million Constellation shares. Constellation will also assume approximately $12.7 billion of Calpine’s net debt, bringing the net purchase price to $26.6 billion.

The companies said the deal is expected to close within 12 months.

AI data centers drive power demand, deals follow

The acquisition aims to expand Constellation’s production capacity power demand for Artificial Intelligence (AI) Mizuho Research analysts said last year that the number of data centers in the United States is expected to triple by 2030.

Growing demand for artificial intelligence applications has boosted shares of other energy providers such as Constellation and Duke Energy.all) and NextEra Energy (NEE) higher than last year.

Constellation shares rose more than 23% to $300.50 on Friday, more than doubling in value in the past 12 months.