Houston, United States [RenewableEnergyWorld.com] Acro Energy Technologies Corp., a residential solar installation company, has signed a Letter of Intent to acquire Energy Efficiency Solar Inc. (EE Solar).
Under the Letter of Intent, Acro Energy would acquire all of the issued and outstanding common shares of EE Solar for a purchase price of US $1.95 million consisting of a combination of cash, a promissory note, common stock in Acro Energy, and assumption of EE Solar debt. EE Solar generated approximately $4.2 million in revenue in 2008, servicing customers from its offices in Pomona and Orange.
“We are excited about adding Bill Korthof and EE Solar to Acro Energy,” said Harry Fleming, CEO at Acro Energy. “The acquisition of EE Solar is the first step in Acro Energy’s movement into Southern California. We believe that EE Solar and Acro Energy will build on each other’s strengths. This transaction is consistent with Acro Energy’s strategy of acquisition of leading independent solar installation companies, in addition to organic growth.”
Completion of the transaction is subject to a number of conditions, including negotiation and execution of a definitive acquisition agreement, completion by Acro Energy of a satisfactory due diligence review of EE Solar, receipt of all necessary contractual, regulatory and governmental consents and approvals, the absence of any material adverse change affecting EE Solar, and any necessary approval of the transaction by the TSX Venture Exchange.