San Mateo-based SolarCity Corp. said today that it has a definitive agreement to acquire Paramount Solar in Roseville in a transaction valued at about $120 million.
SolarCity's agreement is with Paramount Equity, of which Paramount Solar is a division. Paramount Solar bills itself as one of the largest residential solar companies in California.
Under the terms of the agreement, SolarCity will acquire Paramount Solar for $116.3 million in stock, and the remainder in cash.
Paramount will retain its local offices but do business under the SolarCity name.
Paramount Equity CEO Hayes Barnard will join SolarCity as chief revenue officer in charge of the company's sales and marketing organizations upon closing of the acquisition.
Officials said Paramount Solar is majority-owned by Santa Monica-based Guthy-Renker LLC, a large direct marketing company. In connection with the acquisition, Ben Van de Bunt, longtime CEO of Guthy-Renke, is expected to join SolarCity's board of directors later this year, subject to nomination procedures and board approval.
"We are incredibly proud of this accomplishment and feel that it is the perfect time to join forces with SolarCity, to offer more customers the ability to take control of their energy costs by producing clean, renewable energy," Barnard said. "Together, we'll develop the most sophisticated customer acquisition and installation system in the industry to provide 1 million customers with residential solar systems, forever changing the way energy is consumed, and at a lower cost."
Officials expect the transaction to be completed in September, subject to various conditions and approvals.
Read more Wednesday in The Sacramento Bee and at Sacbee.com.
Call The Bee's Mark Glover, (916) 321-1184.