Written by: Leonard Parker | Solar News | 04th October
The acquisition creates a regional full-service solar installation company servicing the residential, commercial, industrial and utility-scale markets as well as the growing demand for the electric vehicle (EV) charging infrastructure. The alignment of software, shared services and vendor base will enable synergies with expected $1.25 million in savings in year 1 and provide opportunities to reduce customer acquisition costs across all business segments.
Transaction consideration to SunCommon shareholders includes approximately $25,534,621 in cash and an aggregate of 1,810,915 shares of ISUN shares of Common Stock of iSun; provides for the future distribution of $2.5 million directly to SunCommon employees, expands eligibility under the Company’s Equity Incentive Plan to all iSun employees, and provides for $1.5 million working capital infusion into SunCommon, now a wholly owned subsidiary of iSun Residential, Inc.
The transaction executes phase one of iSun’s recently announced East Coast residential strategy and builds on iSun’s commercial, industrial and utility-scale presence in Maine, New Hampshire, Vermont, Connecticut, Massachusetts, Rhode Island, New York, Maryland, North Carolina and South Carolina. The combined organization on a pro forma basis generated net revenues of approximately $51.4 and $70.0 million in calendar years 2020 and 2019, respectively.
“The electrification of everything – automobiles in particular – is going to rapidly accelerate energy demand across all sectors,” states Jeffrey Peck, iSun’s chairman and CEO. “With this acquisition, iSun is perfectly positioned – and has the perfect partner – to address this opportunity across the residential sector with a partner who has built a scalable residential platform with best-in-class capabilities, industry-leading customer acquisition cost of $0.36/W DC, and, most importantly, who shares our values.”
Peck will serve as the CEO of the combined organizations, and Peterson and Moore will continue to serve as co-presidents of SunCommon. The existing iSun board of directors will remain as currently established.