ADT to acquire Sunpro Solar for approximately $825 million
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You want solar panels with that?
In a bid to sell solar power to customers who are already investing in their homes, security giant ADT announced on Tuesday that it will acquire Sunpro Solar, a Louisiana-based company that designs, installs and services solar panels. for residential and commercial properties.
About half of Americans say they have seriously considered installing solar panels on their homes, but only 6% have done so according to a recent Pew Research poll. One barrier to greater adoption is consumer hesitancy caused by industry fragmentation — even Tesla’s SolarCity has yet to gain a foothold in the market.
ADT – with its security products already installed in 6 million homes – hopes its high profile and large sales force will present consumers with a trusted brand to meet solar needs. With Sunpro and his team in tow, he’s betting big he can tap into this market:
- ADT will acquire Sunpro for approximately $825 million, including debt, with a combination of $160 million in cash and 77.8 million ADT shares covering the balance.
- Sunpro Chief Executive Officer Marc Jones and the rest of the company’s management team will join ADT to lead a new division called ADT Solar.
Safe, Secure, Vital: It’s not just security and solar that ADT hopes to deliver. In 2020, ADT announced a $450 million investment from Google and then began supplying the tech company’s Nest smart home pod integrated with ADT’s security systems. During its earnings call on Tuesday, the company clearly stated its goal: to ensure that its customers are “protected, connected and powered by ADT.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.