Jan. 15, 2014 - Real Goods Solar, Inc. has acquired Mercury Energy in a merger transaction.
"The addition of Mercury significantly increases the overall depth and breadth of our capabilities," said Kam Mofid, CEO of Real Goods Solar. "In August of last year, we acquired Syndicated Solar to strengthen our residential business and it produced a significant increase in our homeowner engagements. Following Mercury's integration over the next few weeks, we expect to likewise accelerate our growth in the commercial sector."
"Our increased size and scale strengthens our commercial and residential sales capabilities in key solar markets, and reinforces our ability to bring to our customers more comprehensive end-to-end solutions, including attractive project finance options," continued Mofid. "As an added benefit, Mercury bolsters our balance sheet with an additional $12 million of net working capital, including more than $10 million of cash, and without adding debt. We plan to use these funds to further accelerate growth in key markets across the country."
Jared Haines, president of Mercury, commented: "The entire Mercury team is very excited to be joining Real Goods Solar, a recognized pioneer and leader in solar energy. Our combined resources and capabilities make us a very strong national player and a more significant force in the industry."
Real Goods Solar acquired Mercury in an all-stock transaction totaling approximately 8.3 million shares of Class A common stock, which recently received shareholder approval. In addition to valuable physical assets, operational systems and customer base, Mercury brings to Real Goods Solar more than 50 employees, including three seasoned executives who have been appointed to key positions.
"Real Goods Solar has made tremendous progress over the past 18 months," said Mofid. "We developed and deployed a precise roadmap that successfully addressed a number of key issues and challenges, and this allowed us to restart our growth engine on the back of improved productivity and results.
"With the Mercury transaction complete, Real Good Solar has become very well-positioned in terms of leadership talent, geography, and internal resources and capabilities. As we embark upon the next phase of our journey, we are looking forward to an exciting year ahead and taking the business to the next level of growth and performance."