Nov 4 (Reuters) – ARRAY Technologies and Shoals Technologies Group said on Wednesday they had agreed to merge in an all-stock deal valuing Shoals at about $1.32 billion, combining their solar equipment businesses to expand product offerings and cut costs.
The deal brings together ARRAY’s structural solar equipment, including trackers and mounting systems, with Shoals’ electrical infrastructure products, including wiring and cable management systems.
Here are more details:
• Shoals shareholders will receive 1.6931 ARRAY shares for each share they own, giving the deal per-share value of $7.86 or $1.32 billion, according to a Reuters calculation
• The deal values Shoals at about $7.86 per share, a 7.2% discount to its last closing price
• Shoals shares rose 5.1% and ARRAY shares gained 13.6% in premarket trading
• Following the deal’s expected completion in the first quarter of 2027, Shoals shareholders are expected to own about 65% of the combined company, while ARRAY shareholders will hold the remaining 35%.
• ARRAY will be the legal acquirer and corporate parent of the combined company
• Shoals CEO Brandon Moss will lead the combined company, while ARRAY CEO Kevin Hostetler will serve as special advisor
• The companies expect the combination to simplify project installation, reduce costs and improve system performance
• The combined company expects 2027 revenue of $2.2 billion-$2.4 billion and adjusted EBITDA of $410 million-$480 million, including about $35 million in first-year synergy benefits
(Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid)
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