A small company in revenue with $2M near-term revenue commitments but significant IP and 30-40% project gross margin could make for an interesting combination.
The Peck Company Holdings, Inc. (NASDAQ: PECK), a leading commercial solar engineering, procurement and construction (“EPC”) firm and iSun Energy LLC. (“iSun”) a supplier of advanced solar energy, electric mobility, and smart city solutions for government, commercial, retail, academic, and data-center projects announced they have entered into a binding term sheet under which Peck will acquire iSun in an all-stock trade. Mr. Peress will become Chief Innovation and Expertise Officer.
This is another good example of innovation / transformation in the residential solar market.
Acquisition Rationale
Peck established a prominent position over the previous 50 years as a leading electrical and data contractor and the biggest solar EPC in Vermont, focused on high-quality commercial, industrial, and small-utility scale solar projects.
Despite COVID-related challenges this past year, there were no job cancellations. The last reported pipeline was $56M, with no expected overhead developments required to execute the current pipeline. Obtaining the iSun® Brand and its innovations are constant with Peck’s development toward serving our clients as a full-time energy solutions supplier.
Additionally, adding higher-margin products and electricity services will positively impact average solar EPC margins. Combining Peck’s lucrative EPC business for solar, electrical, and data contracting with award-winning products and platforms that are modular, scalable, and connected is a strong mix that distinguishes the organization from other solar EV charging companies.
Highlights
- Peck Solar will continue to function as industrial, commercial, and utility-scale solar markets with high-quality rooftop and floor mount solar installations. Along with Peck Data and Peck Electric company units, it will expand into new markets.
- The iSun® Brand offers include the iSun Energy & Mobility Hub, a solar lamp for EV charging, and the iSun Oasis Smart Solar Bench will immediately start to be supplied by the entire group to its present and new prospect base.
- ISun Energy near term pipeline is in Connecticut, Massachusetts, New York, and other places, to be announced soon.
- Timely market growth capitalizes on the Biden government’s strategy to make significant public investments in renewables and electrical mobility infrastructure, including 500,000 electric car charging stations.
- Industry experts expect 100 GWs of solar infrastructure will be constructed over the next five years, representing 50 percent growth.
- As the new government, Armed Forces, municipalities, and corporate entities increase aid for renewable energy infrastructure and electrify their vehicle fleets, iSun’s customized approach will tailor technology that are readily deployable, scalable, strong, and intelligent. The AI (artificial intelligence) code that iSun has in development will allow for”right-sizing” of energy creation, storage assets, and electric vehicle charging infrastructure to enhance resiliency to get on/off-grid applications.
ISun’s creations have been recognized this year by the Solar Impulse Foundation of Bertrand Piccard as one of the globe’s Top 1000 Sustainability Solutions. As a winner, this award will result in the iSun alternative being introduced to hundreds of government entities worldwide, including various municipal, state, and national agencies in the United States.
The transaction is anticipated to close in January 2021, subject to Peck’s Board of Directors’ acceptance.
