Following approval from a bankruptcy court, California-based rooftop solar company Sungevity Inc. has sold substantially all of its assets to Solar Spectrum, a newly formed company backed by an investment group led by Minnesota-based private equity firm Northern Pacific Group.
After losing a deal to become a public company and raise much-needed capital, Sungevity filed for Chapter 11 bankruptcy in March, and according to reports, the court recently signed off on Sunvegity’s $50 million sale to the Northern Pacific-led consortium. The investment group includes Hercules Capital of Palo Alto and DGB Investments, a wholly owned investment vehicle of Douglas Bergeron, former VeriFone chairman and CEO.
Under the terms of the transaction, Solar Spectrum has acquired Sungevity’s infrastructure, technology, installer network, supplier warranties and certain agreements. In an announcement, Solar Spectrum says it intends to hire the substantial majority of current Sungevity employees, and the company has also acquired Sungevity’s European businesses and will continue to operate them under their current branding.
Separately, Solar Spectrum says it intends to reach out to all current users of Sungevity solutions in the U.S. to offer an attractively priced warranty solution. This campaign will commence in early May.
Solar Spectrum’s management team is led by CEO Patrick McGivern and President and COO William Nettles. McGivern is the former head of operations at Fitbit, and Nettles is the former general manager and head of acquisitions at VeriFone. Solar Spectrum says its leadership will work with Northern Pacific Group to leverage its capital base and build a sustainable business that creates value for the company’s employees, partners and customers.
McGivern states, “Today marks a new beginning for this business. I am proud to lead a new player in the residential solar market that has a healthy balance sheet and a competitive value proposition. We thank our employees, customers and partners for their patience and for their continued support and commitment. Together, we will focus on building a sustainable and successful business at the forefront of solar as the industry continues to grow.”
Scott Honour, managing partner at Northern Pacific Group, adds, “The residential solar market remains extremely attractive and fragmented, and we see ample opportunity for innovation and targeted growth through future acquisitions. We have a lot of experience working with multi-local service businesses to refine their customer acquisition efforts and create sustainable growth, and we will bring this experience to Solar Spectrum.”