Alphabet in $4.75 Billion Acquisition of Intersect Power

Cleary Gottlieb is representing Alphabet in the company’s definitive agreement to acquire Intersect, which provides data center and energy infrastructure solutions, for $4.75 billion in cash, plus the assumption of debt.

Google already owns a minority stake in Intersect from a previously announced funding round. The acquisition will enable more data center and generation capacity to come online faster while accelerating energy development and innovation.

Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be led by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team, continuing work on in-development and new joint projects. This includes the companies’ first announced co-located data center and power site, under construction in Haskell County, Texas. Included in the transaction are Intersect’s world-class team and multiple gigawatts of energy and data center projects in development, or under construction, from its successful existing partnership with Google. Intersect will also explore a range of emerging technologies to increase and diversify energy supply, while supporting Google’s U.S. data center investments to meet its Cloud customers’ and users’ demand.

Intersect’s existing operating assets in Texas, and its operating and in-development assets in California, will not be part of the acquisition. Those assets continue to operate as an independent company, supported by existing investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners. Intersect expects a seamless transition and service continuity for customers of those assets.

For more information, please see the client’s press release.

The Cleary M&A team includes partners Aaron Meyers and Glenn McGrory, associates Matthew Kelleher, Megha Vyas, and Moliang Jiang, and law clerk Kacey Manlove, with assistance from associates Pierre Allegaert and Keki Takahara. Partner Michael Albano and associates Emily Barry and Erin McKissick are advising on executive compensation and employee benefits matters, with assistance from law clerk Phoenix Shaw. Partners Meyer Fedida, Maureen Linch, Kylie Barza, and Samuel Kramer are providing tax advice, with assistance from law clerk Samuel Makikalli. Partner Daniel Ilan and associate Natalie Curry are advising on intellectual property and data privacy matters, with assistance from associate Christine D’Alessandro. The finance team includes partner Duane McLaughlin and associates Nicholas Pokas and Zhiyuan (Andy) Xie. Partner Beau Sterling and associate Madison Bush are advising on environmental matters. Senior attorney James Corsiglia is providing advice on anti-corruption matters. Partner Samuel Chang and associate Kerry Mullins are advising on foreign investment matters. Partner David Herrington is advising on litigation matters. Counsel Victor Chiu is providing UCC assistance.