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You want solar panels with that?
In a push to upsell power from the sun to customers already investing in their homes, security giant ADT announced on Tuesday it will acquire Sunpro Solar, a Louisiana-based firm that designs, installs, and maintains solar panels for residential and commercial properties.
Here Comes The Sun Power
Roughly half of Americans say they have seriously considered installing solar panels on their homes, but only 6% have done so according to a recent Pew Research poll. One hurdle to greater adoption is consumer hesitancy caused by fragmentation in the industry — even Tesla's SolarCity is yet to grab a sizable foothold in the market.
ADT — with its security products already installed in 6 million homes — is hoping its name recognition and sizable sales team will present consumers with a trusted brand to fulfill solar needs. With Sunpro and its team in tow, it's betting big that it can tap into that market:
- ADT will acquire Sunpro for roughly $825 million, including debt, in a combination of $160 million in cash and 77.8 million shares of ADT stock covering the rest.
- Sunpro's chief executive, Marc Jones, and the rest of the firm's management team will join ADT to run a new division labeled ADT Solar.
Safe, Secure, Vital: It's not just security and solar that ADT hopes to offer. In 2020, ADT announced a $450 million investment by Google and subsequently began providing the tech company's Nest smart home pod integrated into ADT's security systems. During itsearnings callon Tuesday, the company clearly stated its goal: getting its customers "protected, connected, and powered by ADT."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
