ARRAY and Shoals Agree Stock Merger for Solar Infrastructure

ARRAY Technologies Inc. and Shoals Technologies Group Inc. said Wednesday they have agreed to combine in an all-stock merger that would create an integrated energy-infrastructure platform spanning solar trackers, foundations and electrical balance-of-system gear, according to a joint company statement and MarketWatch.

Exchange ratio and ownership

Under the deal, ARRAY would be the legal acquirer and corporate parent. Shoals shareholders would receive 1.6931 ARRAY shares for each Shoals share and are expected to own about 65% of the combined company’s basic shares outstanding at closing, with ARRAY holders owning the rest, the companies said. MarketWatch reported that ARRAY shares rose about 11% after the announcement.

Leadership and timing

Shoals Chief Executive Brandon Moss would lead the combined company. ARRAY Chief Executive Kevin Hostetler would become a special adviser, and Brad Forth, who chairs both boards, would chair a 10-member board of the merged firm, the statement said. The companies expect the deal to close in the first quarter of 2027, subject to shareholder votes, regulatory clearances, Nasdaq listing authorization and other customary conditions.

Scale the companies project

On a preliminary, indicative basis, the companies estimated pro forma full-year 2027 revenue of $2.2 billion to $2.4 billion and adjusted EBITDA of $410 million to $480 million, including expected first-year synergies. They said they aim for more than $100 million of annual adjusted EBITDA synergies within three years of closing. ARRAY also committed to redeem $317.5 million of its Series A perpetual preferred stock in stages after closing, the joint release said.

The boards of both companies unanimously approved the merger among directors who voted; Forth did not participate in the consideration or vote, according to the companies.

Sources: ARRAY Technologies, MarketWatch, PV Tech.