Security giant ADT enters US rooftop solar market with US$825m Sunpro Solar acquisition

Rooftop solar is a US$15 billion annual market in the US but only 3% of homes have systems in place. Image: Sunpro Solar.

Home security giant ADT has entered the US rooftop solar PV market with the acquisition of Sunpro Solar, rebranding the company as ADT Solar

The transaction is worth US$160 million in cash plus approximately 77.8 million shares of ADT common stock, meaning a total enterprise value of roughly US$825 million.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Sunpro founder Marc Jones and the company’s management team are expected to join ADT to help develop the newly formed ADT Solar.

Jim DeVries, ADT president and CEO, called Sunpro “the perfect partner” that unlocked an “integrated home experience that includes security, automation, and energy management”.

“By combining a cash-flow-positive company in the high-growth solar space with ADT’s trusted brand, national footprint, and cross-sell potential, we can expand offerings to our customers and accelerate growth for both ADT and ADT Solar,” said DeVries, adding that residential solar is a US$15 billion annual market but is only found in 3% of US homes.

According to ADT, there are a host of strategic and financial benefits to the transaction, including increasing ADT Solar’s addressable market, brand trust and recognition, ADT’s existing reach allowing for effective customer acquisition and cross-selling, the leveraging of national networks and distribution systems and a positive financial position.

Founded in 2008 has been growing rapidly, according to ADT, with a 90% year-over-year increase in installs in 2020.

Moreover, it is a good time to be getting into the US rooftop solar market, with the US Department of Energy (DOE) seeking to streamline the permitting process for rooftop PV as part of efforts to cut red tape for households and accelerate the rollout of residential solar systems.

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of the year.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA