Clairvest-backed NovaSource Power Services and SunSystem Technology (SST) LLC merged, creating one of the major O&M companies in North America.
As a result of the merger, NovaSource Power Services and SunSystems Technology will operate under the name NovaSource. Additionally, the companies will combine their operations and field technicians, forming one of the leading O&M speciality companies.
As a single company, NovaSource will operate in 9 different countries, with 550 field technicians on hand. The company also prides itself on being within a single hour drive of 95% of all U.S. solar infrastructure. And with transportation costs increasingly seen as a significant cost factor, the decreased technician travel time will provide cost-effective services worldwide for clients.
Before the merger, NovaSource Power Services operated across five continents and in 22 U.S. states, concentrating in building and operating innovative renewable energy projects, O&M consulting services, and strategic supply chain infrastructure.
“Over the last 10 years SST has set the standard for the solar industry in servicing distributed generation, E.V. charging and storage systems. Their innovative and agile approach has created the clear market leader with significant scale and robust national coverage. Bringing the groups together, with Derek as the leader of NovaSource’s Distributed Generation (D.G.) O&M, will provide asset owners with a highly differentiated and compelling service solution for their rapidly evolving needs.”
Jack Bennet, CEO of NovaSource
Mr. Bennet has served as CEO since May 2020, having most recently served as the Vice President of Operations and Maintenance of Sunpower Corporation since January 2018.
Previously, he served as the deputy city manager of the Skolkovo Foundation in Skolkovo, Russia, the Russian equivalent of Silicon Valley. He holds a bachelor’s in business administration from George Washington University and an MBA from Boston University.
NovaSource Power Services
NovaSource Power Services, headquartered in Austin, Texas, is a portfolio company of Canadian private equity firm the Clairvest Group Inc. (TSE: CVG) and Clairvest Equity Partners. The company is relatively new, having been established in May 2020, due to a Clairvest buyout of Sunpower Corporation’s (NASDAQ: SPWR) O&M business, which was renamed NovaSource. Since then, Novasource Power Services has grown to manage over 3.5 gigawatts (G.W.) of commercial, industrial, and utility-scale projects.
Additionally, in August 2020, Clairvest agreed to purchase First Solar’s North America operations (approximately 200 O&M associates). No financial terms were disclosed in the agreement. These acquisitions are part of Clairvest’s multi-year plan of creating an O&M market leader through a “buy and build” strategy.
The Clairvest Group
The Clairvest Group, founded in 1987 by a group of Canadian entrepreneurs, currently has over CAD 2.4 billion of capital under management. The firm has initiated investments in 52 different platform companies and shares a co-investment pool capitalized at CAD 850 million with Clairevest Equity Partners, focusing on equity investments in growth companies.
Clairvest’s second-quarter report, released in November 2020, showed a book value of CAD 868.5 million or CAD 57.67 per share as of September 30, 2020. The net loss for the quarter was CAD 24.2 million or CAD 1.61 per share. Net income for the quarter was CAD 40.1 million, equivalent to CAD 2.66 per share.
SunSystem Technology LLC
SunSystem Technology LLC, founded in 2008 and headquartered in Rancho Cordova, California, near Sacramento, specializes in the operations and maintenance sector, concentrating in distributed generation (D.G.) solar, servicing residential portfolios, commercial system owners, asset managers, and electric vehicle charging stations.
The company previously acquired two other organizations, Power Overhaul, a New Jersey-based solar contractor in September 2019 and Next Phase Solar, a California based residential O&M company in December 2016. Additionally, SunSystem Technology had raised five million dollars in May 2017 in a funding round from Royalty North Partners, a Vancouver, Canada based investment firm. SunSystem Technology also had several loan agreements with Royalty North previously.
Derek Chase had served as CEO since 2013, and currently holds the position of President DG US of NovaSource Power Services. He previously worked in a quality assurance position at Solar Power Inc.
