Arkados Group Inc., a software developer and system integrator enabling Internet of Things (IoT) applications for commercial and industrial customers, has closed its previously announced acquisition of SolBright Renewable Energy LLC, a solar energy design and development company based in Charleston, S.C.
SolBright is a provider of turnkey development, engineering, procurement and construction (EPC) services for the commercial/industrial and military solar PV markets. Arkados says it paid $15 million in a combination of cash, debt and stock for substantially 100% of the assets of SolBright, including a current backlog of approximately $40 million in distributed generation EPC projects and a large pipeline of additional projects throughout the eastern U.S.
Arkados says the transaction will allow the company to significantly expand its Arkados Energy Solutions business into the rapidly growing renewable energy industry and open many new customer opportunities for its IoT solutions. Patrick Hassell, founder and managing director of SolBright, will now serve as president of Arkados Energy Solutions.
“SolBright has been one of the more active super-regional designers and installers of solar systems primarily along the East Coast, but as far reaching as California, by completing approximately 30 MW of projects during that time. SolBright’s strong track record, which is a testament to Patrick and his team, yielded industry-leading win rates and a loyal, blue chip customer base,” says Terrence DeFranco, CEO of Arkados Group Inc. “The closing of this acquisition marks an important milestone in our growth and is expected to be a tremendous catalyst for revenue and earnings growth.”
“We believe that this transaction will allow us to take our business to the next level and realize many more opportunities with our existing and future customer opportunities,” states Hassel. “With Arkados, we can add a cutting-edge set of services that should help to establish us as a clear leader in the industry. The SolBright team is very excited to have access to Arkados’ technology solutions based on our belief that our customers will greatly benefit from them.”
AIP Private Capital and AIP Asset Management acted as the lead investors for the acquisition financing, providing $2 million in convertible debt and an additional $500,000 in equity. L2 Capital LLC and SBI Investments LLC provided subordinated debt in the amount of $792,000, and Arkados secured additional working capital of approximately $600,000 in equity from other investors. Joseph Gunnar & Co. LLC acted as the placement agent and advisor to Arkados and will continue in this capacity as the company explores other opportunities.The Capital Corporation, an investment bank headquartered South Carolina, served as the exclusive investment banking advisor to SolBright on the transaction.