Isun (NASDAQ:ISUN) stock is shining brighter on Wednesday following news of a deal with SunCommon that will expand its business.
This new deal will have iSun acquiring SunCommon with a mix of cash and stock. That includes $24,034,621 in cash and $15,965,379 in stock. There’s also plans for $2.5 million of the consideration to go directly to SunCommon employees, as well as a stock ownership plan for iSun employees, and a $1.5 million working capital infusion.
According to iSun, the deal will also result in $1.25 million in savings during the first year due to synergies between the two companies. In addition to that, iSun is expecting the deal to be accretive to earnings by doubling its projected revenue for 2021.
Jeffrey Peck, chairman and CEO of iSun, said the following about the deal boosting the company’s stock today.
“This is a milestone moment for iSun. The Electrification of everything is going to rapidly increase energy demand across all sectors. With this acquisition, we are addressing this opportunity in the residential sector with a partner who has built a scalable residential platform with best-in-class capabilities, industry leading customer acquisition cost of $0.36/Wdc, and most important – who shares our values.”
Investors that want to know more about the deal can join a joint conference call between iSun and SunCommon. It’s taking place tomorrow at 8:30 a.m. Eastern Time.
ISUN stock was up 9.7% as of noon Wednesday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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