Sunworks enters deal to acquire Solcius for US$51.8mn

Sunworks, Inc., a provider of solar power and storage solutions for agriculture, commercial, industrial, public works, and residential markets, and Solcius, LLC (Solcius), a privately held, rapidly growing residential solar company, has entered into a definitive agreement pursuant to which a subsidiary of Sunworks will acquire Solcius, valued at US$51.8 million on a cash-free and debt-free basis, in an all-cash transaction.

The transaction creates a national solar power provider with a presence in 12 states, including California, Oregon, Utah, Nevada, Arizona, New Mexico, Texas, Colorado, Minnesota, Wisconsin, Massachusetts, and South Carolina. Together, the combined organization generated net revenue of approximately US$131.5 million in the calendar year 2020. Sunworks expects the combined company to be profitable in the first full year after integration and after capturing strategic, operational, and cost synergies.

The Board of Directors of each of Sunworks and its subsidiary, Sunworks United, Inc., unanimously approved the definitive transaction agreement, which includes an all-cash payment of US$51.8 million, subject to customary purchase price adjustments, and customary seller representations and warranties and indemnification obligations.

In 2020, Solcius generated approximately US$93.4 million in revenue and reported US$2.8 million of operating income.