Under the terms, Finavera will acquire the solar residential installer for 1,915,238 company shares and up to four payments of US$1 million. The cash payments are contingent on Solar Alliance meeting certain revenue targets up to December 2017; however, Finavera will pay $1.2 million in advance, some of which will be invested in business expansion.
Solar Alliance president and CEO, Arte Rose is expected to join Finaveras new advisory board following the acquisition, which is still subject to TSX Venture Exchange approval and customary closing conditions.
Looking to capitalize on the U.S. residential solar power market, which is forecast to reach 100 GW by 2020 Finavera CEO, Jason Bak said, "We plan to grow Solar Alliance organically throughout California and make further acquisitions in order to become a significant player in the US residential solar market." pv magazine has contacted Bak for more details.
In a similar acquisition at the end of last year, U.S.-based SunEdison and its yieldco subsidiary, TerraForm Power joined forces to purchase First Wind, thus forming what it says is the biggest renewable energy developer globally. The transaction cost totaled $2.4 billion.