The agreement is subject to clearance by the Irish Competition Authority and by the Irish and Northern Ireland energy regulators and the acquisition is expected to be completed in the first quarter of 2008.
SSE said in a statement that it will assume liability for Airtricity’s net debt of €375m, giving an enterprise value of €1,455m for the business being acquired.
In addition to the equity value of €1,080m, €746.5m will be paid in consideration for the net proceeds received by Airtricity for the disposal of its North American business, resulting in a total cash consideration of €1,826.5m.
Airtricity develops and operates wind farms in the UK, Ireland, continental Europe and China and supplies electricity to mainly commercial customers in Ireland.
Following the acquisition, SSE expects to have over 3,500MW of operating renewable energy capacity – including hydro, pumped storage and biomass – by 2013.