ADT acquired Sunpro Solar (Compass Solar Group, LLC) for Approximately $750 million total consideration (cash of ~$142 million net of cash acquired plus ~75 million ADT shares valued at ~$569 million, including ~5 million shares issuable through 2022); announced with an implied enterprise value of ~$825 million ($160 million cash plus ~77.8 million shares), a transaction completed in December 2021, structured as combination (cash plus stock; nearly all of the sellers' consideration was ADT common stock).
Sunpro Solar (Compass Solar Group, LLC) operates in Solar (rebranded ADT Solar; ADT later exited the residential solar business), is based in Mandeville, Louisiana / United States (56 locations across 22 states). Sunpro Solar, founded in 2008, marketed, designed, sold, installed and maintained rooftop solar power systems for residential and commercial properties through a full-time workforce of roughly 3,600 solar professionals across 56 locations in 22 states, and was ranked the #2 U.S. residential rooftop solar contractor for 2021. ADT rebranded the business as ADT Solar to enter the residential solar market. ADT subsequently rationalized the operation, decided in January 2024 to exit the Solar Business entirely, and had substantially ceased all solar operations as of June 30, 2024.
ADT positioned the deal as a logical extension of its ecosystem, combining Sunpro's cash-flow-positive, asset-light solar model with ADT's national footprint, brand and ~6 million-customer base to build a leading national residential solar installer while lowering customer-acquisition costs.
Cash-flow-positive, asset-light business with 90% year-over-year installation growth in 2020 and four-plus consecutive years of positive EBITDA, acquired at roughly 10x estimated next-twelve-months standalone EBITDA. Cross-selling solar to ADT's ~6 million-customer base and lower customer-acquisition costs via ADT's national salesforce and marketing channels; transaction expected to be positive to EBITDA and free cash flow immediately and accretive to EPS within 12 months. Operated as ADT Solar; Sunpro founder Marc Jones and the Sunpro management team joined ADT.
With its strong focus on the customer, Sunpro is the perfect partner for ADT and a logical extension of our ecosystem, unlocking an integrated home experience that includes security, automation, and energy management. By combining a cash-flow-positive company in the high-growth solar space with ADT's trusted brand, national footprint, and cross-sell potential, we can expand offerings to our customers and accelerate growth for both ADT and ADT Solar.Jim DeVries, President and Chief Executive Officer, ADT Inc.
Becoming part of the ADT family will accelerate our ability to bring residential and commercial rooftop solar to more customers, helping them save money and also become more energy independent.Marc Jones, Founder, Sunpro Solar
Advisory firms were not disclosed for this transaction.