Peck to buy solar installer Sunworks

Solar modules. Featured Image: Jackiso/Shutterstock.com

US commercial solar contractor The Peck Company Holdings Inc (NASDAQ:PECK) has agreed to acquire solar installer Sunworks Inc (NASDAQ:SUNW) in an all-stock deal.

The partners have sealed a definitive agreement that will see shareholders in the target company exchange one Sunworks share for 0.185171 Peck shares. As a result, Sunworks’ shareholders will receive almost 3.08 million units of Peck’s common stock, giving them around 36.54% in the combined company.

California-based Sunworks provides solar power systems for agriculture, commercial and industrial applications, as well as for the residential market. Its acquisition by Peck is anticipated to bring around USD 6 million (EUR 5.1m) in annualised cost synergies. The contribution to earnings and free cash flow is expected after integration synergies have been implemented.

Sunworks' total backlog of projects as of end-June amounted to USD 36.1 million, according to its latest financial report. Details on key metrics for its second-quarter financial performance are available in the table.

Amounts in USD million	Q2 2020	Q2 2019
Total revenue	9.7	18.7
Gross margin	17.1%	19.5%
Operating profit (loss)	(1.3)	0.13
Operating costs	3	3.5
Net profit (loss)	(1.5)	(0.08)

“This is a transformational combination, leveraging the respective strengths of the two organizations and creating a national leader in the fast-growing and resilient solar energy industry,” said Jeffrey Peck, CEO of Peck.

The definitive agreement has been greenlighted by the directors of each company and the deal is planned to be finalised in the last quarter of 2020. Following the merger, Jeff Peck will be the chairman and CEO of the combined company.

Last year, Peck and Sunworks installed a combined 62.97 MW of photovoltaic (PV) capacity.

(USD 1.0 = EUR 0.851)

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