Vancouver’s Finavera to acquire solar sales company in California
The US$4-million share purchase agreement gives Finavera a toe-hold in what it sees as a lucrative future solar market
VANCOUVER—Finavera Wind Energy Inc. says it will acquire San Diego, Calif.-based Solar Alliance of America, Inc., a residential solar equipment sales and marketing company, in a US$4-million share-purchase deal.
The Vancouver-based renewable power developer is paying four cash instalments of $1 million.
“The residential solar market in America represents a revolution for distributed renewable power generation.” said Finavera CEO Jason Bak. “The market for residential solar power in America is expected to be 100 gigawatts by 2020, which is 100-times [the size of] today’s market.”
Bak says the acquisition of Solar Alliance provides a growth platform for Finavera to capitalize the expansion of this market and the opportunities it will present, and that Finavera plans further acquisitions in in the region to become a significant player in the U.S. residential solar market.
The contingent payments are subject to Solar Alliance meeting certain revenue targets during any of the fiscal quarters beginning after the closing date of the agreement and ending on or before December 31, 2017. Contingent payments are due 30 days after the end of any fiscal quarter that triggers such payment. The contingent payments will be adjusted for certain working capital items and related future cash flows.
The agreement is subject to TSX Venture Exchange approval and customary closing conditions.