Colorado, United States [RenewableEnergyWorld.com] Real Goods Solar Inc., a residential solar energy integrator, announced that it has expanded its business through a merger with Regrid Power Inc. This transaction represents the Real Goods’ fourth acquisition in less than a year.
Regrid Power generated more than US $15 million of revenue and positive operating income for the twelve months ended September 30, 2008. Consideration paid in the merger, including debt assumed, was less than one times trailing twelve months revenue and will consist of one-third cash and two-thirds stock, as well as an earn out provision.
This strategic transaction is consistent with Real Goods’ strategy of driving profitable growth through the acquisitions of established market leaders with reputations for quality, in addition to its organic growth, the company said.
“By combining our operational efficiencies and design excellence with Real Goods Solar, a solar pioneer and an industry leader, we will have an enhanced ability to scale and deliver our outstanding service to a much larger population of customers,” said Tom McCalmont, CEO of Regrid Power. “Real Goods is the original solar company and has a philosophy that is very compatible with Regrid’s.”