Real Goods Solar Inc. has signed a definitive agreement to acquire New York-based installer Mercury Energy Inc. in a merger transaction.
Real Goods Solar says it will issue 7.9 million shares of its class A common stock, subject to certain adjustments, as the consideration for the acquisition of Mercury. The transaction is subject to the approval of the shareholders of each company. A representative of Mercury's current board will be nominated to join Real Goods Solar's board of directors.
According to Real Goods Solar, Mercury's assets include approximately $10 million of cash with no debt. After the transaction closes, the cash balance will be available to Real Goods Solar for general corporate purposes and to accelerate the growth of the combined business.
Upon closing, Mercury will bring more than 50 employees to Real Goods Solar, including Jared Haines, co-founder and president, who will become vice president of sales at RGS Energy, the commercial and utility division of Real Goods Solar; Anthony Coschigano, a co-founder, who will become vice president of northeast operations at RGS Energy; and Andrew Zaref, Mercury's chief financial officer and chief operating officer, who will become vice president of project finance at Real Goods Solar.
‘This acquisition significantly expands our presence as a major solar solutions provider in key solar markets across the East Coast,’Â says Real Goods Solar CEO Kam Mofid. ‘As an added benefit, it also strengthens our balance sheet with additional working capital that we expect to use to further accelerate growth in key markets across the country.’
