Innergex Renewable Energy Inc. surged after pension manager Caisse de Depot et Placement du Quebec agreed to buy the Canada-based power company in an all-cash deal that values it at about C$10 billion ($7 billion) including debt.

Quebec pension fund manager CDPQ has signed a $10-billion deal to buy Innergex Renewable Energy Inc. in a bid to leave the “short-term” view of stock market investors behind. Under the agreement, the Caisse de dépôt et placement du Québec will pay $13.

CDPQ has a long-standing relationship with Innergex, having made its first investments in the company in 1995. Over the years, CDPQ has made multiple investments and is now Innergex's second-largest shareholder after Hydro-Quebec, which owns 19.9% of Innergex outstanding common shares.

Offer values company’s equity at about $2.8-billion, while enterprise value including Innergex debt is $10-billion