Finavera targets US residential solar
Finavera Wind Energy has signed an agreement to acquire California-based Solar Alliance of America for $4m cash and $2m in stock, marketing the Canadian company’s entry into the US residential solar market.
Finavera will finance the transaction either from $10.5m cash it anticipates obtaining in the fourth quarter from the sale of its Irish wind energy project, or by way of bridge financing through debt issuance.
Finavera expects to close the deal with 90 days subject to due diligence and customary closing conditions including TSX Venture Exchange approval.
In 2013, Solar Alliance of America had $20.7m in revenue. Inc. magazine ranked the company 49 on its Top 500 list of America's Fastest Growing Private Companies.
From its inception in 2009, Solar Allianceof America has installed approximately 1,350 residential solar systems in southern California.
Going forward, Finavera intends to focus its renewable energy development efforts on residential and utility scale solar projects in the US.
"The national residential solar market in America has been growing at 60-70 percent annually due to the dramatic fall in solar panel prices, the rise in electricity rates from traditional utilities and the availability of tax incentives,” says Finavera chief executive Jason Bak.
Finavera is based in Vancouver.