(Reuters) - Northland Power Inc said on Monday it would buy most of Colombian utility Empresa de Energia de Boyaca (EBSA) in a deal valued at C$1.05 billion ($797.9 million), including debt.
The proposed acquisition is Northland’s second investment in Latin America, following the La Lucha solar project in Mexico that began construction earlier this year.
EBSA serves a population of 1.3 million residents across 123 municipalities, Northland Power said.
The company said it expected the deal to add to its free cash flow by mid-single digit during the current regulatory period ending 2023.
Based on submitted tariff, EBSA is expected to contribute about C$100 million to adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in 2020.
The deal is expected to close in the fourth quarter this year.
Reporting by Debroop Roy in Bengaluru; Editing by Maju Samuel