ARRAY Technologies Inc. and Shoals Technologies Group Inc., two U.S. suppliers of equipment for utility-scale solar farms, agreed to merge in an all-stock deal that pairs ARRAY’s sun-tracking mounts with Shoals’ wiring and power-delivery systems.
Under the agreement announced Wednesday, Shoals shareholders will receive 1.6931 ARRAY shares for each share they own, and will hold about 65% of the combined company. ARRAY, based in Albuquerque, N.M., will be the legal acquirer and parent. Based on Tuesday’s closing prices, the exchange ratio valued Shoals at about $7.86 a share, or roughly $1.32 billion, slightly below where Shoals stock had been trading. Both stocks rose in early trading, with ARRAY gaining more than 13% before the open.
Leadership and outlook
Shoals Chief Executive Brandon Moss will lead the combined company, while ARRAY Chief Executive Kevin Hostetler will become a special adviser. Brad Forth, who already chairs both boards and recused himself from the vote, will chair the new board of ten directors. The companies plan a new name and ticker symbol.
The companies estimated pro forma 2027 revenue of $2.2 billion to $2.4 billion and adjusted Ebitda of $410 million to $480 million, including about $35 million of first-year savings and cross-selling gains. They expect annual Ebitda synergies to top $100 million within three years, noting that only about one in five projects they served in 2025 and 2026 used products from both. Shoals’ existing tax amortization and net operating losses are expected to keep cash taxes low for several years.
Cleaning up the preferred
As part of the deal, ARRAY agreed with holders of its Series A perpetual preferred stock to redeem $317.5 million of it: $161.3 million at 93% of liquidation preference within 90 days of closing, and the rest at 96% in installments through 2030. The companies projected net debt of about 2.6x Ebitda at year-end 2026, falling below 2x by the end of 2027.
The merger needs approval from both companies’ shareholders and regulators and is expected to close in the first quarter of 2027. Jefferies advised Shoals, and JPMorgan advised ARRAY, with Lazard advising ARRAY’s special committee.
