Shoals Technologies Group and Array Technologies have proposed a merger that would unite the two Nasdaq-listed solar companies and combine their electronic balance-of-system (EBOS) and tracker products. The deal is subject to shareholder approval and is expected to close in early 2027.
Under the proposed stock-for-stock transaction, Shoals shareholders would receive 1.6931 Array shares for each Shoals share. They would own approximately 65% of the combined company, with Array shareholders holding the remaining 35%. Investor documents forecast revenue of $2.2 billion to $2.4 billion in 2027.
Array would remain the legal successor, a structure intended to avoid refinancing its existing debt. The merged company’s name and Nasdaq ticker will be announced later. Shoals CEO Brandon Moss would lead the business, while Array CEO Kevin Hostetler would serve as a special advisor.
The companies say the merger could increase sales to their existing customers, support new product development and provide opportunities for international expansion. On a November 4 investor call, Moss said that only 20% of the companies’ combined project volume in 2025–26 used products from both businesses. He described this as a cross-selling opportunity, estimating up to $2.5 billion in incremental sales if each company supplied its full product range to every project served by the other.
Moss also pointed to possible product development that could integrate components earlier in the design process, including wire management and tracker systems, pre-engineered EBOS and SBOS kits, and digital tools for coordinating mechanical and electrical layouts.
The proposed transaction includes a $317.5 million buyback of a special class of Array investor shares that currently carries priority payment rights. The companies expect the buyback to reduce future payouts and leave more cash available to the business. They also cite Shoals’ approximately $1.6 billion in tax amortization and $237 million in net operating losses as potential ways to reduce taxable income and cash tax obligations for several years.
Sources: pv magazine.