Smart home and small business electronic security provider ADT has forayed into the US rooftop solar market with the acquisition of residential rooftop solar contractor Sunpro Solar. The deal holds a total enterprise value of around $825 million.
The money will be paid as $160 million in cash along with close to 77.8 million shares of ADT common stock, shared the companies.
Estimating residential solar to be a $15 billion annual market with only 3% US market reach, ADT said it will rebrand Sunpro to ADT Solar to expand its portfolio as a 'logical extension' of its ecosystem, 'unlocking an integrated home experience that includes security, automation, and energy management'.
ADT Solar is likely to benefit from 6 million homes that its parent ADT touts as its customers, and in turn will increase its total addressable market.
Catering to the residential and commercial segments, Sunpro designs, sells, installs and maintains solar power systems in 22 US states. With ADT's acquisition, the company sees its end consumers becoming more 'energy independent'.
Among strategic benefits this acquisition brings to ADT Solar, includes larger presence in the home automation and energy management markets.
"We believe we have the potential to grow ADT Solar into a multi-billion-dollar business over time as we meaningfully increase the accessibility and penetration of residential solar across America," said ADT President and CEO Jim DeVries.
Solar is a thriving market in the US and is likely to see more new entrants into the sector also through takeover efforts as the Biden administration sees potential for the technology to account for 40% of the national electricity mix by 2035 (see US Wants 40% Electricity From Solar By 2035).
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