Shoals Technologies Group and Array Technologies have proposed a merger that would combine two US Nasdaq listed solar companies into a single entity, with a product range covering electronic balance of system (EBOS) and tracker products.

Subject to shareholder approval, the stock-for-stock merger would see Shoals shareholders own around 65% of the combined company, with Array shareholders owning the remaining 35%. Investor documents for the merger forecast combined revenue of $2.2 billion to $2.4 billion in 2027.

Under the proposed deal structure, Array would continue as the legal successor company, which avoids the need to refinance Array’s existing debt, and all Shoals shares will be exchanged for Array common shares. A new corporate name and ticker symbol for the NASDAQ listed company will be announced at a later date.

Shoals CEO Brandon Moss would take charge of the newly combined entity, while Array CEO Kevin Hostetler will serve as a special advisor.

The deal is being pitched by Shoals and Array as a way to drive incremental revenue growth from the two companies’ existing customer base, while also offering potential to develop new products and expand internationally.

In a call to investors on Nov. 4, Moss noted that only 20% of the two company’s combined project volume used products from both companies in 2025-26, which the CEO identified as a significant cross-selling opportunity, with $2.5 billion of incremental sales potential if each company sold its full product suite into every project served by the other.

“The power of this combination is not simply that we will have a broader product set,” said Moss, who argued that the merger represents a combination of companies with leading products in some categories as well as products with technical points of difference.

Moss also suggested the merger could support new product development by allowing the business to integrate components at an earlier stage, citing integrated wire management and tracker designs, pre-engineered EBOS and SBOS kits, and digital design tools that coordinate mechanical and electrical layouts.

The idea of merging Shoals and Array is not new. Shoals CEO Moss noted that it had been floated since before he was appointed in 2023. The two companies also already share a chairman of the board – Brad Forth.

When asked why the right time was to merge, Moss highlighted current business performance, noting “unbelievably strong order books” and recent new product development from both Shoals and Array.  “Theres is a tremendous amount of synergies between the two companies,” Moss said.

The merged company also plans to buy back $317.5 million of a special class of Array investor shares that currently entitles their holders to priority payments. Buying back the “Preferred Stock” is expected to cut future payouts and leave more cash available for the business. The combined company also expects to benefit from Shoals’ approximately $1.6 billion of tax amortization and $237 million of Net Operating Losses, which are expected to reduce taxable income and limit cash tax obligations for several years.

Shoals and Array expect the proposed merger to complete in early 2027. If approved, Shoals shareholders will receive 1.6931 Array shares for each Shoals share.