SolarCity will acquire the assets of Paramount Energy Solutions, a unit of Paramount Equity, in a transaction valued at about $120 million. Under the terms of the agreement, SolarCity will acquire the Paramount Solar business for $116.3 million in stock, and the remainder in cash.
Paramount Equity CEO Hayes Barnard will join SolarCity as chief revenue officer in charge of the company’s sales and marketing organizations upon closing of the acquisition.
Paramount Solar, one of SolarCity’s most successful channel partners, is majority-owned by Guthyâ‚Renker, the company behind Proactiv Solution.
SolarCity expects a more significant impact from the acquisition in 2014, but it is updating 2013 guidance to 278 MW to account for Paramount Solar’s backlog of uninstalled customers. SolarCity is already the number one full-service solar energyprovider in the nation with more than 3,300 employees, more than 68,000 customers and more than 400 MW deployed.
The company’s goal to reach one million customers equates to about 6,000 MW deployed, or 6 GW of total generation capacity.
The transaction is structured as the acquisition of all of the assets and the assumption of certain liabilities of the business of Paramount Energy Solutions, LLC. The transaction is expected to be completed in September, subject to customary closing conditions. Following the completion of the acquisition, Paramount Equity Mortgage, LLC, Value360, LLC, and Ironstone Insurance LLC, the remaining divisions of Paramount Equity, will continue to operate as independent companies.