In a difficult energy market Solar3D Inc. (NASDAQ: SLTD) found a solid strategy to get ahead: acquisitions. Early in Tuesday’s session, the company announced that it finalized the acquisition of Elite Solar. The deal was previously announced in August, when Solar3D entered into an agreement with Elite Solar to acquire the company through a merger agreement. The purchase price for Elite Solar was $7 million.
Elite Solar is a California-based solar systems provider, including Universal Racking Systems, a manufacturer of highly advanced ground mount racking for solar systems.
The addition of Elite Solar to the Solar3D family of companies marks the third major acquisition executed by the company since it began this acquisition strategy. This vision of consolidating profitable solar companies servicing customers in key markets has led Solar3D to experience tremendous growth, increasing 2015 revenue guidance by 20% and issuing revenue guidance of $100 million for the year 2016.
With the purchase of Elite Solar now completed, Solar3D continues to identify additional solar companies that possess solar expertise that is complimentary to its existing subsidiaries, and that will boost the company’s top line revenue and operating profit.
Kirk Short, CEO of Elite Solar, commented on the acquisition:
We are very happy to be part of the Solar3D team. We have already found many ways to collaborate to drive sales and work toward becoming the most efficient solar integrator in America. We believe that the collaboration of our companies will allow us to grow much more rapidly and profitably.
Jim Nelson, CEO of Solar3D, added:
This is a win-win transaction. The Elite Solar executive team led by CEO Kirk Short will thrive in our culture. Their expertise will make us a better company. We believe Solar3D stands out within the highly fragmented solar market for focusing on what is in the best interest of our customers and delivering what we promise. With Elite’s help, we expect to consistently drive revenues and profits and thus provide short term and long term value to our shareholders.
Shares of Solar3D were trading at $2.95 Tuesday, with a consensus analyst price target of $5.75 and a 52-week trading range of $2.00 to $8.88.
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