Funding and M&A Roundup: Microinverter Company Enphase Acquires Sofdesk
Residential Solar Company Sunlight Financial to go public in a $1.3 Billion SPAC deal
February 1, 2021
From: Mercom Capital Group
Enphase Energy, a microinverter technology provider for the solar industry, has announced the closing of its acquisition of Sofdesk. Sofdesk’s Solargraf integrated software platform offers the industry’s digital tools and services to simplify and accelerate the end-to-end sales process across the residential solar industry. The Solargraf platform provides solar installers with critical pre-sales engagement design, quoting, and work-flow management from any PC, tablet, or mobile device.
Loanpal, a solar loan origination platform that finances solar systems and batteries, has secured over $800 million in funding in its first external investment round. The investment round was led by NEA, WestCap Group, Brookfield Asset Management, Riverstone Holdings, and other private investors. Scott Sandel, Managing General Partner at NEA, and Laurence Tosi, the Managing Partner of WestCap Group, have joined Loanpal’s board of directors as part of the transaction.
African Rainbow Energy and Power (AREP) has acquired a strategic stake in the SOLA Group in a move that will provide significant investment to fund further expansion. The companies joined forces at the end of 2020, with AREP acquiring a 40% stake and becoming the group’s largest individual shareholder. AREP is focused on clean energy solutions, with a portfolio of 740 MW of renewable investments (including wind, solar PV, and biomass) providing affordable energy through the utilization of modern and renewable energy technologies.
DNV GL has acquired U.S.-based engineering consultancy Energy and Resource Solutions, which helps organizations to manage and reduce energy costs through program design, outreach, implementation, and evaluation services. Combining the two companies’ expertise and services creates a unified team that will partner with global customers to address and accelerate the energy transition.
EDF Renewables North America (EDFR), a renewable energy project developer, has acquired a 100% stake in EnterSolar, a distributed generation solar solution provider to corporate commercial and industrial (C&I) customers. EDF Renewables previously held a 50% interest in EnterSolar in a strategic partnership they announced in 2018. Through this acquisition, EnterSolar benefits from EDF Renewables’ equipment procurement capabilities, project development capital, and additional product offerings while positioning EDFR to meet the accelerating demand for distributed generation solar solutions from the corporate C&I market.
Sunrun, a U.S. based provider of residential solar electricity, has announced the pricing of $350 million aggregate principal amount of 0% convertible senior notes due 2026 in a private placement. Sunrun also granted the initial purchasers the option to purchase up to an additional $50 million aggregate principal amount of the notes within 13 days. The notes’ sale is expected to close on January 28, 2021, subject to customary closing conditions.
Intersect Power, a developer of utility-scale renewable energy, has secured $127 million in equity funding from Climate Adaptive Infrastructure and Trilantic North America to accelerate its transition to a scalable electric power provider for utilities and large end-users. Intersect Power has also closed on a $482 million debt facility with Generate Capital and CarVal Investors. Orrick, Herrington & Sutcliffe provided legal counsel to Intersect Power. Latham & Watkins acted as legal counsel for the equity providers and Kirkland & Ellis and Foley & Lardner for debt.
Distributed Solar Development (DSD), a commercial and industrial solar installer and operator in the U.S., has announced the closing of a $300 million debt facility financed by Credit Suisse. The financing is aligned with DSD’s 2021-2022 projects under development and flexible enough to support its anticipated growth. The Credit Suisse debt facility will be used to finance a broad range of commercial and industrial projects and distributed generation assets.
Sila Nanotechnologies, a manufacturer of materials for lithium-ion batteries, has announced that it raised $590 million Series F funding at a $3.3 billion post-money valuation. Coatue led the round with significant participation by funds and accounts advised by T. Rowe Price Associates, Inc. Existing investors 8VC, Bessemer Venture Partners, Canada Pension Plan Investment Board, and Sutter Hill Ventures also participated in the round. Sila Nano will use the funds to develop a new North American 100 GWh plant to produce its silicon-based anode material and serve smartphone and automotive customers.
FreeWire Technologies, a provider of power solutions for the grid edge, has announced a $50 million Series C funding round, led by Riverstone Holdings (Riverstone), with participation from current shareholders bp ventures, Energy Innovation Capital, TRIREC, and Alumni Ventures Group. The new investment will enable FreeWire to accelerate international market expansion of its flagship product, Boost Charger, and expand production capacity to meet unprecedented customer demand. The round brings the total venture funding to nearly $100 million.
Plug Power, a U.S.-based provider of hydrogen engines and fueling solutions enabling e-mobility, has announced the pricing of an upsized offering of 28,000,000 shares of its common stock at a price to the public $65.00 per share. Plug Power has granted the underwriters a 30-day option to purchase up to an additional 4,200,000 shares at the public offering price, less the underwriting discount. The offering is expected to close on or about January 29, 2021. Morgan Stanley is acting as a sole book-running manager.
NovaSource Power Services, a portfolio company of Clairvest Group and Clairvest Equity Partners VI and SunSystem Technology, a provider of operations and maintenance (O&M) services to the renewable energy industry, has announced the merger of the two companies. The companies will bring together operations in the coming months. Upon completion of the merger, the combined group will operate under NovaSource.
Sunlight Financial, a U.S.-based residential solar financing platform, has signed an agreement for a business combination with Apollo Global Management-backed Spartan Acquisition Corporation II, a special purpose acquisition company (SPAC), resulting in Sunlight Financial becoming a public company. The combined company, which will be named Sunlight Financial Holdings and listed on the New York Stock Exchange on the transaction’s closing, will have a market value of $1.3 billion. The transaction is expected to be completed in the second quarter of 2021. Upon closing the transaction, Sunlight Financial will be the sole operating subsidiary of the combined company. Its existing team will continue to lead the business of the combined company.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
Read last week’s funding roundup.