Complete Solar and Solaria have completed their previously announced merger, forming Complete Solaria Inc. to deliver end-to-end residential solar solutions.
“We are thrilled to announce the completion of the merger between Complete Solar and Solaria. This merger redefines residential solar with breakthrough technology, services, and operational excellence, to empower sales and installation partners to scale up and increase the adoption of residential solar,” says Will Anderson, who will lead the combined company as CEO. “Our customers and partners can expect the same high level of attention we have always provided and more. Complete Solaria’s combined assets and vertically integrated business model are positioned to deliver a unique end-to-end experience for homeowners, offering premium, beautiful solar products, best-in-class technology, access to financing, and superior project fulfilment and service.”
“I’m extremely excited about what the combination of Complete Solar and Solaria will be able to achieve,” states Tony Alvarez, the company’s president. “Solaria’s dealers and distributors will benefit from access to Complete Solar’s sales partners and digital platform, and Complete Solar’s partners will benefit from the ability to offer the industry’s leading premium solar panel. We couldn’t be happier to join with Complete Solar and make progress toward our shared vision of a clean energy future.”
The combination of these two companies establishes Complete Solaria as a full system operator with an offering with technology, financing and project fulfilment that will enable the company to sell more product across more geographies in the United States and Europe.
On a pro forma combined basis, Complete Solaria generated $80 million in revenue in 2020, which is projected to increase to over $120 million in 2022, and more than double to approximately $285 million in 2023, with the expectation of achieving breakeven EBITDA in the second half of 2023.
The completion of the merger between Complete Solar and Solaria satisfies one of the conditions to closing of the previously announced business combination between Complete Solaria and Freedom Acquisition I Corp., which is expected to close in the first half of 2023, subject to the satisfaction of customary closing conditions. The business combination with Freedom is supported by strategic relationships, including financial backing from the Carlyle Group and T.J. Rodgers, which were both investors in Solaria. Freedom, led by Tidjane Thiam, Adam Gishen and Edward Zeng, will also retain a stake in the combined company following the closing.
The business combination with Freedom is expected to provide gross proceeds of $376 million, prior to any potential redemptions and payment of transaction expenses, which includes $346 million of cash held in Freedom’s trust account and promissory notes from certain investors. Under the terms of the business combination agreement, all shareholders of Freedom who do not exercise their redemption rights will roll their equity holdings into the new combined company.
