iSun said that it plans to acquire SunCommon in a combination of cash and shares of common stock. The two companies have experience serving as engineering, procurement, and construction (EPC) contractors for solar customers at the residential, commercial, industrial, and utility scale.
iSun said the move positions it to target opportunities in the residential and small commercial sectors. The deal is expected to double the company’s projected revenue for 2021.
The transaction includes $24 million in cash and $15 million in stock, and provides $2.5 million directly to SunCommon employees. It also establishes a stock ownership plan for all iSun employees.
iSun said the alignment of software, shared services, and the two companies’ vendor base will unlock synergies with an expected savings of $1.25 million in the first year.
iSun CEO Jeffrey Peck hailed SunCommon’s success in residential customer acquisition, citing its leadership in the sector with an acquisition cost of $0.36/watt. The combined organization generated net revenues of roughly $51.4 and $70.0 million in calendar years 2020 and 2019, respectively. SunCommon brings a positive EBITDA along with a strong customer acquisition platform, the companies said.
In addition to its solar EPC services, iSun provides energy storage solutions, and Level 2 electric vehicle charging stations.
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