RGS Energy, a provider of turnkey solar energy solutions, has signed a definitive agreement to acquire Elemental Energy, a full-service solar energy firm operating under the Sunetric brand, for $16m.
Pursuant to the terms of the definitive agreement, the company has agreed to pay a total consideration of $16m to Sunetric for the acquisition. The company will pay $7m in cash and $9m in unregistered Class A common stock.
Additionally, Sunetric will be eligible for an additional $3m in potential earn-out payments. Subject to satisfaction of certain customary closing conditions, the transaction is anticipated to close in the second quarter of 2014.
Following the acquisition, Sunetric will maintain its current management team and well-established Sunetric brand as a wholly-owned division of RGS Energy. Sunetric brings more than 90 employees to RGS Energy.
Sunetric CEO Alex Tiller noted the company's years of industry experience in originating, designing and installing solar systems of varying complexity and size for commercial, residential and utility-scale customers throughout all the islands is highly complementary to RGS Energy.
Tiller said, "We're looking forward to applying the resources that RGS Energy provides in order to increase our project development capabilities and financing options for our customers. We are excited to become part of one of the largest and true pioneers in the solar industry.
"Our cultures mesh very well, so we look forward to propelling our combined business to a dominant position in the industry."
Formed in 2004, Sunetric has installed more than 3,500 solar projects in Hawaii, representing over 65MW of installations.
In 2013, Sunetric had a reported revenue of $38m. The company maintains an extensive backlog and pipeline of commercial and residential projects.