Array Technologies and Shoals Announce $2.2 Billion Merger, Targeting Revenue of Up to $2.4 Billion
Key Facts
Array Technologies and Shoals Technologies Group announced a definitive all-stock merger agreement on November 4 in a deal that Investing.com described as worth $2.2 billion. Under the terms, Shoals shareholders will receive 1.6931 shares of ARRAY for each share they own. Shoals shareholders are expected to own about 65% of the combined company's basic shares after the deal closes, compared with 35% for ARRAY shareholders. ARRAY will be the legal acquirer and parent company, even though Shoals shareholders will hold the larger stake. The agreement therefore redistributes ownership between the two companies while bringing together their products for solar and battery storage infrastructure.
ARRAY provides structural systems solutions for utility-scale solar projects, while Shoals manufactures electrical systems for those projects and battery energy storage. By combining these areas, the companies are targeting a broader range of infrastructure components required by projects. The combined company expects initial pro forma revenue of between $2.2 billion and $2.4 billion for full-year 2027. It also expects adjusted EBITDA of between $410 million and $480 million in the same year, including first-year savings. These estimates apply to the merged entity and form part of the companies' forecasts for performance after the deal closes.
The companies identified commercial opportunities and areas for cost reductions, and said they expect to generate more than $100 million in additional annual adjusted EBITDA synergies within three years of completing the merger. These savings are tied to the new entity's commercial and operating plan, alongside its 2027 revenue and earnings estimates. Including the expected synergies in the earnings range would show their anticipated impact on the combined company's first-year results. Reaching these figures remains contingent on closing the deal and the companies' ability to execute the savings and growth opportunities they have identified. The available information gave no further details on how the savings would be divided between commercial areas and cost reductions.
Shoals Chief Executive Brandon Moss is slated to lead the combined company, while ARRAY Chief Executive Kevin Hostetler will become a special adviser. Brad Forth will chair the board. On financing, ARRAY has committed to redeem its Series A perpetual preferred stock, valued at $317.5 million, in stages. The plan includes redeeming $161.3 million within 90 days of closing, followed by payment of the remaining $156.3 million in three installments during 2028, 2029 and 2030. This commitment ties part of the deal's arrangements to payments extending beyond the expected closing date.
Shoals' third-quarter 2026 operating results showed revenue of $195.3 million, up 43.8% from $135.8 million in the same period of 2025. The company attributed the growth in its statement to product demand, market-share initiatives and higher project volume during the year. Moss said, "Productivity improvements drove quarterly revenue and adjusted earnings above the company's expected range." Backlog and awarded orders totaled $791.7 million as of September 30, 2026, up 9.8% year over year. However, the figure was down 1.2% from its level on June 30, while the company attributed the annual increase to continued product demand and growth in emerging battery storage markets.
ARRAY shares rose 22.11%, while Shoals shares gained 11.45% in a premarket snapshot on November 4, according to prices cited in Investing.com's republished report from Reuters. The moves came in the session when the deal was announced, while it was still awaiting approvals. Shoals' second-quarter 2026 report had shown revenue of $163.4 million and net income of $12.1 million. The company then reaffirmed its full-year fiscal 2026 revenue forecast of between $600 million and $640 million. Moss said in that announcement, "The year is progressing well, with second-quarter revenue and adjusted EBITDA within the expected range."
The voting members of both companies' boards unanimously approved the deal, and the companies expect to complete it in the first quarter of 2027. Closing remains subject to approval by ARRAY and Shoals shareholders, regulatory approvals and satisfaction of customary closing conditions. Until then, the expected ownership stakes, the combined company's financial performance estimates and the preferred stock redemption plan remain contingent on completion of the agreement. The expected timeline spans from the deal announcement in November to a potential completion in early 2027. The available information did not specify a date within that quarter.