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

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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.

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.

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