LOUISVILLE, Colo., Aug. 12, 2013 (GLOBE NEWSWIRE) -- Real Goods Solar, Inc. (Nasdaq:RSOL), a nationwide leader of turnkey solar energy solutions for residential, commercial, and utility customers, has completed the acquisition of Syndicated Solar, Inc.
Based in Denver, Colorado, Syndicated Solar's efficient sales processes and integrated software tools have enabled it to rapidly grow in the residential sector. The company has three regional offices in Grand Junction, Colorado, and in the St. Louis, Missouri, and San Jose, California metro areas. The company had revenues of $2.5 million in 2011 and $7.3 million in 2012. The company is expected to double revenue year-over-year in 2013 with approximately $10 million of current backlog.
Real Goods Solar paid net consideration of $2.5 million, plus 400,000 shares of Real Goods Solar unregistered Class A common stock, with the potential for the seller to earn up to $250,000 in additional earn-out payments following the close of the 2013 fiscal year and an additional 1.3 million shares of unregistered Class A common stock in performance based earn-outs over the next two and half year period.The Syndicated Solar acquisition brings more than 40 employees to Real Goods Solar, including Justin Pentelute, Syndicated Solar's founder and CEO, who brings with him outstanding sales and business development leadership and capabilities. Reporting to Kam Mofid, CEO of Real Goods Solar, for the remainder of 2013 Pentelute will continue in his capacity as CEO of Syndicated Solar leveraging Real Goods Solar's back office and supply chain management capabilities with the goal of capturing substantial year-over-year sales and revenue growth in the targeted markets. Over the next few months, Syndicated Solar will be fully integrated into Real Goods Solar's residential division. "I am very excited about this acquisition which adds critical capabilities to our residential division in terms of both additional talent and pipeline and helping Real Goods Solar create more efficient and scalable front-end processes," said Mofid. "Justin and his team have quickly established a solid reputation in our industry. I am confident our combined residential organization will scale and expand rapidly in this very exciting part of the market. This transaction also complements the Mercury Solar Systems acquisition announced last week that strengthened primarily the commercial side of our business. As we accelerate growth both regionally and nationally, we will also have the opportunity to look at unique and innovative financing relationships and solutions to better serve our customers." Pentelute commented: "All of us at Syndicated Solar are very pleased to be joining Real Goods Solar, a true pioneer and an iconic firm in the solar industry. We have grown substantially over the past few years and as part of Real Goods Solar, we can create an even stronger residential solar team to capture the tremendous runway in front of us as we bring this wonderful 100% clean renewable and economically attractive energy to more customers across the nation."