Roseville-based solar company Sunworks buying Utah firm for nearly $52 million
Sunworks, a solar panel installation company based in Roseville, will be buying a privately-held firm for nearly $52 million, expanding its reach to 12 states.
The agreement, announced Thursday, calls for a subsidiary of Sunworks to pay $51.8 million for Solcius, a residential solar installation company based in Utah that already serves 10 states on its own.
Combined, Sunworks companies will now primarily serve California, Oregon, Utah, Nevada, Arizona, New Mexico, Texas, Colorado, Minnesota, Wisconsin, Massachusetts and South Carolina, according to a news release from the company. Combined net revenues of both Sunworks and Solcius were about $131.5 million in 2020, an estimated $38 million of which was generated by Sunworks. Solcius generated a significantly higher $93.4 million that same year.
“Combining Solcius’ growing residential business and expanding national footprint with Sunworks’ established agricultural, commercial, industrial, and public works capabilities will provide synergies and scale to accelerate the growth and expansion that was challenging as two separate, independent companies,” Solcius president Jason Knapp said in a statement. “I am proud of what the Solcius team has accomplished as a privately held company and am excited to integrate our organization with Sunworks to begin the next phase of our evolution.”
An official Sunworks statement said that the new combined company is expected to be profitable within a year after integration.
“Together, the combined organization will be better equipped to deliver solar (engineering, procurement and construction) and development solutions to a broader customer base across the United States, focusing on the rapidly growing residential, commercial, industrial, and public works markets,” Sunworks CEO Gaylon Morris said in a prepared statement. “We feel confident the combination will increase brand awareness across our customer and partner bases due to the greater scale and a significantly enhanced service offering. We believe this combination creates a compelling, well-capitalized, publicly-traded solar leader poised for accelerated, profitable growth.”
Morris will be the CEO of the new combined company, while Knapp will remain president of Solcius. Sunworks’ board of directors will be unaffected.
Sunworks (SUNW) is a publicly-traded company on the Nasdaq exchange, with shares selling near $14 this week. Share prices soared in January after sluggish growth in 2020, reaching nearly $25 per share, and have remained significantly higher than late 2020 prices, which were close to $5.
This story was originally published April 9, 2021 at 8:49 AM.