SolarCity (Nasdaq: SCTY) has completed the acquisition of Zep Solar, for a total consideration of approximately $158 million. The purchase price was paid in approximately 2,752,000 shares of SolarCity common stock and the assumption of options to acquire approximately 303,000 shares of SolarCity common stock.
The acquisition agreement was announced on October 9 this year, and the transaction closed and became effective today.
Zep Solar provides residential PV module mounting systems in the U.S., and has been one of SolarCity's primary component suppliers for residential systems in 2013. Zep Solar will now operate as an independent business unit of SolarCity.
According to SolarCity, Zep's product portfolio works as a comprehensive system, reducing the cost and complexity of designing, shipping, storing, and installing PV systems. Its technology enabled SolarCity's installation crews to double the amount of of residential systems they can install on a daily basis since they began using the product earlier this year.
Tanguy Serra, SolarCity's Executive Vice President of Operations, commented: "Zep Solar's product allows each of our crews to install significantly more solar every day, and it looks better on the roof than any comparable product we've seen. By acquiring Zep Solar, we can deliver solar electricity at a lower cost than was previously possible."