Sungevity, a US-based solar energy installer backed by corporates General Electric, Lowe’s and E.ON, agreed yesterday to go public by merging with special purpose acquisition company Easterly Acquisition Corp.
Sungevity partners with a range of third-party hardware, installation services and finance providers to install solar systems for residential and commercial customers who use money saved from lower energy use to pay for the systems through instalments.
The deal will involve Sungevity’s equity and convertible debt being converted into Easterly common stock. Once the deal is closed the company will operate under the name Sungevity Holdings.
Andrew Birch, Sungevity’s co-founder and chief executive, will maintain his CEO position, and the merged company’s board will consist of board members from Sungevity and Easterly. Easterly Acquisition Corp is a special purpose vehicle sponsored by an affiliate of asset management firm Easterly.
Birch said: “We have always considered ourselves to be the ‘disruptor’ within a disruptive industry.
“Easterly’s management has a track record of bringing innovative, growing companies to public shareholders and we expect that our merger will enhance our ability to innovate and grow as we strive to provide the highest customer experience to our expanding customer base.”
Sungevity has raised about $210m in equity funding, $50m of which came from General Electric’s GE Ventures unit, Apollo Investment Corporation and Hercules Technology Growth Capital in December 2015. GE Ventures and energy utility E.ON joined Jetstream Ventures for a $70m round in April 2014.
Home improvement retail chain Lowe’s, also one of Sungevity’s installation partners, acquired a minority stake in 2011 before taking part in a $40m round two years later with Vision Ridge Partners, Craton Equity Partners and Eastern Sun Capital Partners.
Other Sungevity investors include solar module manufacturer Solon, which participated in its $2.5m series A round back in 2007, Greener Capital and Brightpath Capital Partners.
– Photo courtesy of Sungevity, Inc.