Vancouver, Canada Magma Energy Corp., a Vancouver- based geothermal power developer, agreed to buy Plutonic Power Corp. for C190 million (US195.7 million) in stock to diversify its renewable energy capabilities.
Magma, which will change its name to Alterra Power Corp. after the transaction closes, said in a statement that Plutonic investors will receive 2.38 of its shares for every Plutonic share held, a press release states.
Plutonic operates hydroelectric plants and wind farms and announced in January plans to acquire three photovoltaic solar projects from First Solar Inc.
The sale must be approved by shareholders of both companies at meetings to be held in April. The combined company will have a market capitalization of about C$575 million, reports indicate.