Project developer Real Goods Solar (RGS) has announced it is set to buy fellow installer Mercury Solar Systems.
The deal, which is still to be approved by both sets of shareholders, would involve RGS issuing 7.9 million shares. RGS shares closed on Friday at US$2.29 each.
Mercury, based in New York, has installed 50MW since its formation in 2006 with total cumulative revenues of US$250 million, including US$35 million in 2012.
“This transaction brings together two of the country's highly respected and experienced solar companies, creating a very strong and talented team to increase our market reach and our overall depth and breadth of capabilities,” said Kam Mofid, CEO, RGS.
“This acquisition significantly expands our presence as a major solar solutions provider in key solar markets across the east coast. As an added benefit, it also strengthens our balance sheet with additional working capital that we expect to use to further accelerate growth in key markets across the country,” added Mofid.
Mercury currently has no debt and lists around US$10 million in cash among its assets.
Once the deal is closed Mercury will transfer more than 50 employees over to RGS.
Among these are three of Mercury’s senior executives, Jared Haines, Anthony Coschigano and Andrew Zaref who will take up new positions at RGS. They will become VP of north east sales, VP of north east operations and VP project finance respectively.