Correlate Infrastructure Partners Inc., a technology-enabled energy optimization and clean energy solutions provider for North America, is pleased to announce that it has entered into a nonbinding letter of intent to acquire a leading solar, battery storage and roofing provider headquartered in California. The target company is focused on sales and self-performance construction of solar and roofing services for residential and commercial properties. The proposed acquisition is currently anticipated to close in the second half of 2022 and to be accretive to the Company, and it marks the next evolution of Correlate as a community-scale distributed energy company.
The target company’s unaudited revenues for the years ended December 31, 2021, and December 31, 2020, were $175 million and $121 million, respectively. The Company believes this acquisition will create an unmatched platform for community-scale distributed generation, storage and virtual power plant aggregation.
Correlate will provide its growing platform of energy optimization solutions and finance services to further expand across new service regions.
Todd Michaels, Correlate’s CEO and president, notes, "While Correlate continues to innovate its core platform services for commercial properties, we are actively integrating complementary energy service providers that align with our mission and strengthen our regional execution prowess. We intend to create one of the first profitable and truly scalable distributed energy platforms in all of North America that ensures an optimum customer experience long term."
Strategic Deal Highlights:
The proposed acquisition is expected to provide numerous strategic and financial benefits that will further Correlate’s goal of becoming a leading platform of clean energy and grid optimization services. The Company believes this acquisition will enhance its sales, development and construction capabilities with a mature distribution network and integrated solutions delivery via:
- Expanded national leadership in key markets via the addition of highly experienced construction and engineering teams with proven track records in profitable scale.
- Expertise in regional permitting and interconnection for key residential and commercial solar plus storage markets.
- Integrated digital technologies for the combined companies’ shared commitment to business automation bolstered by IP sharing, strict process control and best-in-class customer experience management.
- A loyal user base of sales partners and end customers, given our ability to deliver best-in-class install times and long-term service guarantee programs beyond labor and equipment warranties.
- Cost efficiencies that improve market position, with lower customer acquisition and G&A costs with regionally unified commercial and residential operations.
- The aggregation, upon completion of the acquisition, of tens of thousands of our residential and commercial customer sites and electric vehicles into distributed, virtual power plants (VPPs) that can provide grid services and community-scale resilience.
Channing Chen, CFO of Correlate, notes, "Innovation, quality and customer centricity have always been core pillars of Correlate’s strategy and will enable scale in target regions. In this proposed acquisition, we have a partner that has years of successful execution expertise in multiple jurisdictions, including engineering excellence, distributed generation development, energy assessments and regulatory compliance vital to our next stage of growth. We look forward to completing the acquisition and the financing required for this complementary company and empowering even more people to live on a healthier planet."
Chen further stated, “Our due diligence review of the target acquisition has commenced, and upon the satisfactory completion of our review we intend to move toward the execution of a definitive acquisition agreement and the closing of the transaction as soon as the closing conditions have been achieved by all parties.”
