SolarCity (News - Alert) Corp. has announced that it has reached an agreement with Zep Solar, Inc. to acquire the company. SolarCity paid approximately $158 million for Zep Solar.
The acquisition of Zep Solar is SolarCity’s second solar company purchase in a two-month period. SolarCity also purchased Paramount Solar for $120 million. Each purchase benefits SolarCity in a different way. With Paramount, the company gains access to markets it was not operating in. By purchasing Zep Solar, SolarCity gains its ‘Zep Groove’ mounting system. Zep Solar’s technology will double the amount of solar that SolarCity can install in a day.
“Upon close of the acquisition, Zep Solar will operate as an independent business unit of SolarCity,” a spokesperson for the SolarCity said.
Tanguy Serra, Solar City's executive vice president of operations, said, "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."
"Zep Solar has a very talented team and an extremely strong patent portfolio. We plan to continue to offer the Zep Compatible platform to international installers looking to increase their productivity. We will also continue to maintain the open nature of the Zep Compatible platform and continue to support integration with module manufacturers and other vendors," Serra added.
The products that Zep Solar designs reduce the cost of shipping, warehousing and installing. SolarCity will market Zep in Australia, Germany, Japan and the United Kingdom.
"We achieved profitability this year and I'm proud of what the Zep Solar team has accomplished in less than four years, and even more excited about how much more we can do in partnership with SolarCity," said Mike Miskovsky, CEO of Zep Solar, who will remain in charge of the company after the acquisition.
Edited by Alisen Downey