US-based power company Altus Power has announced a $1.58bn definitive merger agreement with special purpose acquisition company CBRE Acquisition Holdings (CBAH), sponsored by CBRE Group.

The deal will allow Altus Power to become a public company listed on the New York Stock Exchange.

The deal is expected to generate gross proceeds of almost $678m in cash for the company, which it will use to fund its growth initiatives and strengthen its balance sheet.

The proceeds also include a $275m fully committed common stock private investment in public equity (PIPE) anchored by CBRE Group and other investors.

These include existing investors such as Altus Power’s management and Blackstone Credit, as well as new investors such as ValueAct Capital and Liberty Mutual Investments.

Under the deal, Altus Power’s leadership will continue as co-CEOs of the combined company.

The combined company’s Board of Directors will include representation from Altus Power, CBRE, Blackstone Credit and ValueAct Capital. The board will have a majority of independent directors.

The deal is expected to be completed in the fourth quarter of this year subject to customary closing conditions, including the approval of CBAH’s stockholders.

Altus Power director and co-CEO Lars Norell said: “The CBRE partnership we are announcing today, through the proposed combination with CBAH, will allow us to leverage the strength and reach of the world’s largest real estate services company, along with Blackstone’s exceptional, long-standing sponsorship.

“This will further enhance our ability to serve corporate and public clients with onsite clean energy generation and storage.”

Altus Power offers localised solar generation, energy storage and electric vehicle charging stations across the US. It is currently owned by its management team and Blackstone Credit.

Since its foundation in 2009, the company has built or acquired more than 200 distributed generation solar facilities, with more than 265MW of collective capacity.