August 13, 2013 - SolarCity and Paramount GR Holding, LLC, dba Paramount Equity, today announced that they have entered into a definitive agreement for SolarCity to acquire the assets of Paramount Energy Solutions, LLC dba Paramount Solar, a subsidiary of Paramount Equity, in a transaction valued at approximately $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.
"SolarCity has developed what I believe to be the best field sales and marketing organization in the solar industry. The national residential solar market has been growing between 60-70 percent annually, and we've been growing at twice that rate—144% year over year in the most recent quarter—and had three times the market share of our nearest competitor in 2012," said SolarCity CEO Lyndon Rive. "Now we've found the perfect complement. Hayes Barnard and Guthy│Renker have built what I strongly believe to be the best virtual sales organization in the solar industry, with an extraordinary ability to acquire customers at a low cost. We expect the addition of Hayes, Ben and the Paramount Solar team to help us attain our goal to reach one million customers in the next five years at an even lower cost than was previously possible."
SolarCity expects a more significant impact from the acquisition in 2014, but it is updating 2013 guidance to 278MW to account for Paramount Solar's backlog of uninstalled customers. The company's goal to reach one million customers equates to approximately 6,000MW deployed, or six gigawatts of total generation capacity.
"Over the past four years, the Paramount Solar team has built the company into a direct marketing and virtual sales powerhouse. We are incredibly proud of this accomplishment and feel that it is the perfect time to join forces with SolarCity, to offer more customers the ability to take control of their energy costs by producing clean, renewable energy," said Hayes Barnard. "Together, we'll develop the most sophisticated customer acquisition and installation system in the industry to provide one million customers with residential solar systems, forever changing the way energy is consumed, and at a lower cost."
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.