Tecogen and American DG Energy Inc. today announced that their Boards of Directors unanimously approved a definitive agreement under which Tecogen will acquire all of the outstanding shares of American DG in a stock-for-stock merger.

The transaction creates a vertically integrated clean technology company with ability to offer equipment design, manufacturing, installation, financing, and long term maintenance service.

The combined company will retain the Tecogen name and be led by Co-Chief Executive Officers John Hatsopoulos and Benjamin Locke.
Ben Locke ofTecogen
“We are extremely pleased with this transaction and believe that over time it will create significant value for shareholders. I’d like to thank the independent special committees of the boards of both companies for their diligent work to bring this deal to fruition,” said John Hatsopoulos, co-founder, co-CEO, and director of both Tecogen and American DG.

In a statement the company expressed some of the motivations for the deal, number one being competitive advantage.

‘In bringing American DG under the Tecogen umbrella it allows Tecogen to offer a cost-free-installation option to customers without access to financing, sufficient capital on hand, or for those who may not be interested in owning and maintaining the equipment – creating a vertically integrated clean technology company better able to compete with other distributed generation peers offering in-house financing arrangements.’

Upon closing of the transaction, Tecogen shareholders are expected to own approximately 81% and American DG shareholders are expected to beneficially own approximately 19% of the combined company.