Real Goods Solar completes the acquisition of Mercury Energy, more widely known as Mercury Solar Systems. The solar installer acquired Mercury in an all-stock transaction totaling approximately 8.3 million shares of Class A common stock.
Last week, shareholders of Mercury Energy voted in favor of its merger with a subsidiary of Real Goods Solar. Today, Real Goods Solar (Nasdaq: RSOL) announced it has completed the acquisition of the company. The solar installer acquired Mercury in an all-stock transaction totaling approximately 8.3 million shares of Class A common stock.
Mercury Energy, more widely known as Mercury Solar Systems, has completed over 2,000 solar systems or 60 megawatts in total installations for commercial, residential, and utility customers since the company was founded in 2006.
The addition of Mercury significantly increases the overall depth and breadth of Real Goods’ capabilities. The combined resources and capabilities make the company a stronger national player and a more significant force in the industry.
“With the Mercury transaction complete, Real Good Solar has become very well-positioned in terms of leadership talent, geography, and internal resources and capabilities,” commented Kam Mofid, CEO of Real Goods Solar.
“In August of last year, we acquired Syndicated Solar to strengthen our residential business and it produced a significant increase in our homeowner engagements. Following Mercury’s integration over the next few weeks, we expect to likewise accelerate our growth in the commercial sector,” continued Mofid.
“Our increased size and scale strengthens our commercial and residential sales capabilities in key solar markets, and reinforces our ability to bring to our customers more comprehensive end-to-end solutions, including attractive project finance options,” continued Mofid. “As an added benefit, Mercury bolsters our balance sheet with an additional $12 million of net working capital, including more than $10 million of cash, and without adding debt. We plan to use these funds to further accelerate growth in key markets across the country.”
In addition to physical assets, operational systems, and customer base, Mercury brings to Real Goods Solar more than 50 employees, including three seasoned executives who have been appointed to key positions:
- Jared Haines was appointed vice president of sales at RGS Energy, the commercial and utility division of Real Goods Solar. Haines, a co-founder of Mercury, previously served as Mercury’s president.
- Anthony Coschigano, also co-founder of Mercury, was appointed vice president of RGS Energy’s northeast operations. He will be responsible for integrating and improving all facets of systems deployment and increasing productivity of the combined organization.
- Andrew Zaref was appointed vice president of project finance at Real Goods Solar. He will be responsible for implementing the company’s residential and commercial financing and asset management strategies. Zaref previously served as Mercury’s CFO and COO.
“Real Goods Solar has made tremendous progress over the past 18 months,” said Mofid. “We developed and deployed a precise roadmap that successfully addressed a number of key issues and challenges, and this allowed us to restart our growth engine on the back of improved productivity and results.”
“As we embark upon the next phase of our journey, we are looking forward to an exciting year ahead and taking the business to the next level of growth and performance,” Mofid concluded.