On Tuesday, Sungevity entered into an agreement for Massachusetts-based Easterly Capital to acquire the residential and commercial solar integrator. The deal is expected to close in the second half of this year, subject to conditions including regulatory approval and a vote of Easterly shareholders.
Until now Sungevity has been a private company, but through this acquisition Easterly would take the company public, by changing the name of the acquisition company to Sungevity Holdings. The re-named company will trade on the NASDAQ under the symbol SGVT.
Under the deal Sungevitys existing investors will roll their equity into Sungevity Holdings, and together with Sungevity management will own 59% of the new company, assuming no redemptions by Easterly stockholders. The new companys board of directors will be composed of members from the current boards of Easterly and Sungevity.
This would give Sungevity an implied market capitalization of $607 million, again assuming no redemptions. Citing the two companies, Reuters estimates the value of this deal at $357 million.
This is not Easterlys first time in performing this sort of transaction. Easterlys management has a track record of bringing innovative, growing companies to public shareholders and we expect that our merger will enhance our ability to innovate and grow as we strive to provide the highest customer experience to our expanding customer base, stated Sungevity Co-Founder and CEO Andrew Birch.
Sungevity says that the transaction and resulting capitalization will enhance its competitive position and accelerate its development. The company estimates that it has grown an average of 76% over the last five years. While this is faster than the U.S. residential market as a whole, the company must still compete with SolarCity, which has also grown quickly and holds a roughly 1/3 share of the residential market.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
Popular content
Share
1 comment
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.