Sunergy Lists New Company Zeo Energy on Nasdaq in SPAC Deal

The company's shares will trade under the ticker "ZEO" and "ZEOWW"

March 18, 2024


Florida-based Sunergy Renewables, a residential solar and storage firm, announced it will begin trading on the Nasdaq Stock Exchange after merging with ESGEN Acquisition Corp, a special purpose acquisition company (SPAC).

The merged company, now called Zeo Energy Corp, will trade its shares and warrants under the ticker “ZEO” and “ZEOWW” and will be led by Sunergy’s senior management. Additionally, the Board of Directors of Zeo will include members from both Sunergy and ESGEN.

A SPAC, also known as a blank-cheque company, is a listed firm created specifically to acquire or merge with an existing private company and then take it public rather than going through the traditional initial public offering route.

The deal values the combined company at an implied $475 million enterprise value. The transaction raised approximately $18 million to fund its operations and growth strategy.

“Becoming a publicly traded company is an extraordinary milestone for our employees, our shareholders, and for the residential solar industry,” said Zeo CEO Tim Bridgewater, who previously led Sunergy Renewables. “We are confident that this merger with ESGEN enables us to accelerate our growth strategy, partner with industry players, and serve more customers seeking renewable energy solutions.”

Founded in 2005, Sunergy provides rooftop solar installations, energy storage systems, and efficiency solutions like insulation to homeowners. It delivered $123 million in revenue and $11 million in EBITDA in 2022 by completing nearly 2,400 residential projects.

The company has a geographic focus on high-growth, underserved markets in Florida, Texas, and Arkansas.

Last year, multiple companies in the renewable energy space chose the SPAC route to go public. In May, Suntuity Renewables, a U.S.-based residential solar company, reached a $190 million business combination deal with Beard Energy Transition Acquisition Corp, another SPAC.

Earlier, H2B2 Electrolysis Technologies, a Spain-based electrolyzer manufacturer and green hydrogen project developer, reached a $750 million business combination deal with RMG Acquisition Corp III – also a SPAC.