SolarCity Corp (SCTY) Acquires Zep Solar For $158 Million
SolarCity Corp (NASDAQ:SCTY) has announced today that they have acquired Zep Solar for $158 million in funding. SolarCity made the acquisition because Zep’s solar panel mounting equipment could help reduce the time it takes to complete rooftop work. The acquisition was made $150 million in stock and $8 million in cash, according to SolarCity CEO Lyndon Rive.
Zep Solar was founded in 2009 and raised over $10 million in private equity funding. Zep Solar makes it easier to set up solar panels and create low-profile designs on the sloped roofs of homes and businesses.
SolarCity could use Zep’s system to complete a 6-kilowatt project in one day rather than two or three days. In the past, SolarCity Corp (NASDAQ:SCTY) used mounting systems that they designed or sold by other mounting system makers.
This is the second acquisition of SolarCity Corp (NASDAQ:SCTY) for the year. Paramount Solar was acquired for $120 million last month.
Zep Solar will retain their brand name and will operate separately as a wholly owned subsidiary of SolarCity. Zep Solar currently sells equipment in Australia, the United Kingdom, and Germany. Their next market is Japan. Zep Solar is known for customizing their mounting systems based on the types of roofs that are different countries. Zep also sells mounting equipment to distributors and installers. They also license designs to solar panel makers. The acquisition is expected to close in December this year.
[Source: Forbes]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry