Mar. 27, 2014, 1:09 PM
- RGS (RGSE -1.8%) is buying Elemental Energy, a provider of Hawaiian solar installation services under the Sunetric brand, for $7M in cash, $9M in stock, and $3M in potential earn-outs.
- Elemental/Sunetric has 90 employees and posted 2013 revenue of $38M. The firm has carried out 65MW worth of installations since its 2004 founding.
- RGS is down slightly after nosediving yesterday in the wake of its Q4 report.
Aug. 9, 2013, 11:13 AM
- Shares of Real Goods Solar (RSOL +10.1%) flare up after the company announces it will acquire fellow solar installation services firm Mercury Solar Systems in exchange for 7.9M class A shares (current value of $18.1M).
- Mercury, founded in '08, has installed over 50MW worth of solar capacity over its lifetime, courtesy of 2K+ installations. The company currently has 50+ employees.
- RSOL appears to be getting a good bargain on the basis of P/S arbitrage. RSOL's TTM P/S ratio is 0.68. With 2012 revenue of $35M, $10M in cash, and no debt, Mercury's purchase price seems to be a deal, and its assets will provide RSOL with working capital for expansion.
- Real Goods Solar previously filed a shelf registration to offer up to $25M worth of class A shares in July. (S-3)
- Previous: Real Good Solar skyrockets after SA contributor makes bull case
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Real Goods Solar Inc is a residential and commercial solar energy engineering, procurement, & construction firm. It offers services, including design, procurement, permitting, build-out, grid connection and warranty & customer satisfaction activities.
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