ARRAY and Shoals merger gives Shoals shareholders 65% stake, targets more than $100 million in synergies
Key Facts
ARRAY Technologies and Shoals Technologies Group announced a definitive all-stock merger agreement on November 4, 2026, combining ARRAY’s solar structural solutions with Shoals’ electrical solutions in an energy infrastructure platform. Under the offer filed with the Securities and Exchange Commission, Shoals shareholders will receive 1.6931 ARRAY shares for each share they own. Upon completion, Shoals shareholders will own about 65% of the combined company’s basic shares, compared with about 35% for ARRAY shareholders. Those percentages put Shoals shareholders in the position of holding the larger stake in the new entity. Reuters valued the deal at about $1.32 billion.
The companies’ commercial case rests on the potential to sell each other’s products to their respective customers; they said only about 20% of the projects served by ARRAY and Shoals during 2025 and 2026 used products from both companies. They see this share as room to expand cross-selling by combining ARRAY’s solar tracking components with Shoals’ electrical solutions. That means the deal aims to increase the presence of both companies’ products within the same projects, as well as bring their businesses together on one platform. The statement did not specify a target share of projects that would use both companies’ products after the merger. But the companies tied broader joint use to a commercial opportunity based on the project base they served in 2025 and 2026.
The companies expect cost savings and commercial opportunities to generate more than $100 million a year in adjusted EBITDA synergies within three years of completing the deal. According to the announcement, this estimate includes both expected cost reductions and additional commercial opportunities; it is not limited to either one. The announced commercial opportunities are linked to the potential to sell both companies’ products together in more projects, after only about 20% of projects in 2025 and 2026 used products from both companies. Savings are included in the synergy estimate the companies expect to achieve after closing. The figure remains a stated target for the period after completion, while the source provided no annual timetable for achieving it.
In their preliminary outlook for fiscal 2027, the companies estimated revenue for the combined company of $2.2 billion to $2.4 billion and adjusted EBITDA of $410 million to $480 million. The companies said these estimates include first-year synergies, combining expected business performance with anticipated benefits from the merger. The figures are for 2027, the year in which the companies expect to complete the deal in the first quarter, and are not reported results. The revenue and earnings ranges offer an initial picture of the combined entity’s scale, while the operating assumptions and synergies remain contingent on completion of the deal. The statement provided no actual results for the combined company for an earlier period for direct comparison.
Shoals’ third-quarter 2026 results provide context on one party to the deal: It reported revenue of $195.3 million, up 43.8% year over year, and a gross margin of 31.9%. Those figures relate to Shoals alone in that quarter, while the announced revenue and earnings outlook applies to the combined entity in 2027. Annual revenue growth provides context for the company’s performance before the deal, but does not represent a forecast for the combined company. The 31.9% gross margin likewise describes Shoals’ third-quarter results, not the new entity’s margin. Any comparison between these results and future estimates is subject to differences in period and business scope.
Following the November 4 announcement, Shoals shares rose 5.1% and ARRAY shares rose 13.6% in premarket trading, according to Reuters. In the next session, on November 5, 2026, ARRY closed at $5.30 and SHLS at $8.99, according to EL7 data. The gains refer to premarket trading on November 4, while the prices are the two stocks’ closing levels on November 5. These figures provide two separate snapshots of the stocks’ moves around the announcement; EL7 data includes no additional price comparison for the period cited. The deal announced the previous day came amid the market’s initial reaction to the merger terms.
Under the announced arrangements, Brandon Moss will lead the combined company, while Kevin Hostetler will move into a special adviser role. The companies expect to complete the deal in the first quarter of 2027, but closing is subject to shareholder and regulatory approvals and the satisfaction of customary closing conditions. This timetable sets out the next stage of the agreement, as the merger does not take effect upon announcement. The companies’ 2027 outlook is also tied to completion, while revenue, earnings and synergy estimates remain preliminary figures disclosed for the planned entity. Approvals and the fulfillment of conditions remain necessary before leadership passes to Moss and the combined platform begins operating.