Real Goods Solar acquires Syndicated Solar
Prominent solar energy company Real Goods Solar, Inc. has completed a deal to acquire the assets of Syndicated Solar, Inc. for a net consideration of $2.5 million, plus 400,000 shares of its unregistered Class A common stock.
The seller has the potential to earn up to $250,000 in additional earn-out payments at the end of the fiscal year, as well as 1.3 million extra shares of unregistered Class A common stock in performance-based earn-outs over the next 30 months.
"I am very excited about this acquisition, which adds critical capabilities to our residential division in terms of both additional talent and pipeline and helping Real Goods Solar create more efficient and scalable front-end processes," said Real Goods Solar CEO Kam Mofid. "This transaction also complements the Mercury Solar Systems acquisition announced last week that strengthened primarily the commercial side of our business. As we accelerate growth both regionally and nationally, we will also have the opportunity to look at unique and innovative financing relationships and solutions to better serve our customers."
According to the company, Syndicated Solar has shown promising growth in the residential market, with revenues of $2.5 million in 2011 and $7.3 million in 2012. The company forecasts doubled year-over-year revenue growth in 2013.
More than 40 Syndicated Solar employees will join the ranks of Real Goods Solar, with founder and CEO Justin Pentelute remaining at the helm and reporting to Mofid.
"All of us at Syndicated Solar are very pleased to be joining Real Goods Solar, a true pioneer and an iconic firm in the solar industry," said Pentelute. "We have grown substantially over the past few years and as part of Real Goods Solar, we can create an even stronger residential solar team to capture the tremendous runway in front of us as we bring this wonderful 100% clean renewable and economically attractive energy to more customers across the nation."