October 4 (Renewables Now) - US residential solar companies Complete Solar Holding Corp and The Solaria Corp have agreed to merge into Complete Solaria Inc, with the enlarged business set to go public on the New York Stock Exchange (NYSE) through a combination with a blank check company.
Complete Solaria, a solar technology, services and financing company, will be merging with Freedom Acquisition I Corp (NYSE:FACT) in a deal that gives the enlarged business an equity value of USD 888 million (EUR 899.2m).
The blank-check merger is expected to fetch USD 376 million in gross proceeds, assuming no redemptions by public stockholders, which includes USD 346 million of cash held in Freedom’s trust account and commitments from a group of investors.
The agreed tie-up with Freedom gives Complete Solaria a USD-553-million pro forma enterprise value, implying 1.9 times the company’s projected 2023 revenue of USD 285 million.
Set up in 2010, Complete Solar operates a platform that helps solar service providers connect with residential customers and business owners, centralising the sales, financing and construction parts of the go-green process.
Solaria, which was established in 2000, offers premium solar panels across the US and European markets. The company is backed by American billionaire scientist T.J. Rodgers.
The planned merger of the two businesses will create a full system operator with an expanded national geographic footprint and strong potential for organic growth.
The combination of Complete Solar and Solaria is scheduled to close by the end of the year, while the merger with Freedom should wrap up in the first half of 2023, subject to receiving stockholder and regulatory approvals.