Stem Opens Strategic Review That Could Lead to Sale or Merger

Stem, Inc. has begun a board review that could lead to a sale or merger, putting its future ownership in focus before the clean-energy software company’s Nov. 5 earnings report.

The board is also considering asset sales, refinancing and recapitalization. Continuing with Stem’s current plan remains an option. The board has set no deadline, and the review may end without a transaction.

Stem hired Guggenheim Securities, LLC as financial adviser and Gibson Dunn & Crutcher LLP and Davis Polk & Wardwell LLP as legal advisers.

The review follows Stem’s disclosure of a New York Stock Exchange compliance notice. Stem received the notice Oct. 20 and has 45 days from that date to submit a plan to regain compliance. The company has not linked the notice to its decision to review strategic options.

Stem CEO Arun Narayanan said, “Our priorities are unchanged.” Stem plans to release third-quarter results after the market closes Nov. 5 and hold a conference call at 5 p.m. ET.