Utility-scale balance of systems (BOS) firm Array Technologies and electrical balance of systems (eBOS) company Shoals Technologies Group have signed an agreement to combine in a stock for stock merger.

Announced Nov. 4, the agreement states Array will be the legal acquirer in the transaction, serving as the corporate parent of the newly combined company. The firm will serve a solar and battery storage customer base through a “unified design package” across BOS and eBOS solutions. Additionally, the firm will deliver increasing integration over time, designed to reduce installation costs and streamline project execution.

“Today marks an important milestone for Shoals, ARRAY and the customers we serve,” says Shoals CEO Brandon Moss. “By bringing together two highly complementary businesses with experienced teams, we are creating an integrated platform with broader capabilities, deeper customer relationships and a stronger foundation for long-term growth.

“We believe the combined company will be positioned to better service customers, deliver more innovative and integrated solutions, realize meaningful synergies and pursue expansion opportunities across the solar value chain, data center markets and beyond.”

Moss will also serve as the CEO of the combined company, with current Array CEO Kevin Hostetler serving as special advisor.

Diversifying the platform

The combination of Array and Shoals aims to build a strong, diversified product and service platform, the company says. Utilizing greater scale, a global footprint, broad customer reach, and significant financial benefits will provide an opportunity to serve customers more efficiently than ever.

For Hostetler, the transaction represents “a compelling opportunity” for value creation across the combined customer base. By bringing together complementary strengths, the two firms will be able to better serve customers and investors alike, he says.

“Although structural and electrical systems must operate seamlessly together in the field, they have historically been designed and sourced through separate channels,” Hostetler says. “This combination changes that. Together, we expect to deliver a differentiated, technically integrated and interoperable platform that simplifies project execution, enhances project economics and accelerates innovation for customers.”

Additionally, the two firms will bring together “decades” of technical expertise in solar and storage, constructing a strong engine for innovation. The operating experience of the two companies comprises more than 250 GW of projects, and the combined firm expects to heavily benefit from about $1.6 billion in tax amortization from Shoals.

The company plans to announce a new corporate name and ticker symbol over the next few months, reflecting its newly expanded scope of products and services.

— Solar Builder magazine