BOCA RATON, Fla. — Security company ADT Inc. has announced an agreement to acquire Mandeville-based Sunpro Solar (Sunpro) for $160 million in cash plus approximately 77.8 million shares of ADT common stock. ADT will rebrand Sunpro to “ADT SolarTM” and enter the rooftop solar business.
“With its strong focus on the customer, Sunpro is the perfect partner for ADT and a logical extension of our ecosystem, unlocking an integrated home experience that includes security, automation, and energy management,” said Jim DeVries, ADT president and CEO in a press release. “By combining a cash-flow-positive company in the high-growth solar space with ADT’s trusted brand, national footprint, and cross-sell potential, we can expand offerings to our customers and accelerate growth for both ADT and ADT Solar.”
Founded in 2008, Sunpro markets, designs, sells, installs, and maintains solar power systems on residential and commercial properties nationwide through a 3,600-person, full-time workforce of solar energy professionals with 56 locations in 22 states. The company said it has been growing quickly, claiming a 90% year-over-year increase in installs in 2020 and a cash-flow-positive, asset-light business model with more than four consecutive years of positive EBITDA.
The cash portion of the proceeds are expected to be used for debt reduction and sellers’ taxes. Nearly all of the sellers’ consideration is in ADT stock.
“Becoming part of the ADT family will accelerate our ability to bring residential and commercial rooftop solar to more customers, helping them save money and also become more energy independent,” said Sunpro founder Marc Jones. “With our shared mission to further advance smart home technologies and renewable energy solutions for customers, our expansion will make a meaningful difference in how our customers live daily.”
The completion of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close by year-end 2021.
