Multinational Corporation Real Goods Solar acquires Syndicated Solar

Real Goods Solar Inc., a Louisville-based installer of solar energy systems, has completed the acquisition of Denver-based Syndicated Solar Inc. to grow its residential market, officials announced Monday. Syndicated Solar has three regional offices in Grand Junction, Missouri and California. Syndicated Solar's efficient sales processes and integrated software tools allowed the company to rapidly grow in the residential sector, officials said in a news release. The company brought in revenues of $2.5 million in 2011 and $7.3 million in 2012 and is expected to double revenue year-over-year in 2013. Real Goods Solar (Nasdaq: RSOL) paid $2.5 million and issued 400,000 shares of its unregistered Class A common stock with the potential for the seller to earn up to $250,000 at the close of the 2013 fiscal year and an additional 1.3 million shares of unregistered Class A common stock over the next two and a half years. Over the next few months, Syndicated Solar is expected to be fully integrated into Real Goods Solar's residential division, officials said. The acquisition will add more than 40 employees to Real Goods Solar, including Justin Pentelute, Syndicated Solar's founder and CEO. Real Goods Solar on Friday also agreed to acquire Mercury Solar Systems in an effort to build its East Coast business. Real Goods Solar plans to issue 7.9 million shares of its Class A common stock for the Port Chester, N.Y.-based Mercury. Based on Real Goods Solar's $2.29 closing price Friday, the deal would be valued at more than $18 million. Mercury, founded in 2008, posted $35 million in revenue in 2012 and has cumulative revenue of $250 million, Real Goods Solar officials said. Under the terms of the transaction -- which is subject to shareholder and regulatory approval -- Mercury's workforce of more than 50 people would join Real Goods Solar as would three of its executives, including company co-founder Jared Haines, officials said.