Canada-based Innergex Renewable Energy has entered an arrangement agreement to purchase all issued and outstanding common shares of Alterra Power for C$1.1b ($858m).

The deal includes the assumption of Alterra’s debt and the company’s shareholders will receive C$8.25 ($6.39) for each Alterra share and 0.4172 of Innergex’s common shares.

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With the deal, Innergex seeks to solidify its position as a renewable energy independent power producer by adding eight operating projects with 364MW net capacity and three projects under construction with 118MW net capacity.

The company will also be able to add a further three prospective projects with 686MW net capacity alongside other US production tax credit (PTC) qualified prospective projects.

“We believe [the transaction] significantly accelerates Innergex’s growth profile with a path to reach a net installed capacity of more than 2,000MW by 2020.”

Innergex Renewable Energy president and CEO Michel Letellier said: “This transaction is highly strategic and accretive for Innergex as we believe it significantly accelerates Innergex’s growth profile with a path to reach a net installed capacity of more than 2,000MW by 2020.

“The geographic and energy sources profile of Alterra’s portfolio further diversifies Innergex’s asset base by adding operating hydro and wind projects in Canada, a large number of operating, under-construction and prospective wind projects in the US and operating geothermal assets in Iceland.”

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Subject to approval by Alterra’s shareholders and other customary closing conditions, the transaction is expected to be closed by Q1, 2018.

Alterra Power currently operates eight power plants, totalling 825MW of hydro, wind, geothermal, and solar generation capacity in Canada, the US, and Iceland.