ARRAY Technologies to merge with Shoals Technologies in $2.2B deal
ARRAY Technologies (ARRY) and Shoals Technologies (SHLS) agreed to merge in a stock-for-stock deal. Shoals shareholders will receive 1.6931 ARRY shares per SHLS share. The combined company expects $2.2B-$2.4B revenue and $410M-$480M Adjusted EBITDA in 2027, with $100M annual synergies. The deal, approved by both boards, is expected to close in Q1 2027. Brandon Moss will lead the combined company.
How this was made
The 30-second read
Why it matters
The merger creates a larger, vertically integrated player with pro‑forma 2027 revenue of $2.2‑$2.4 billion and $410‑$480 million adjusted EBITDA.
Market read
The announcement is a material M&A event that will reshape the solar equipment sector and offers trading opportunities on both tickers.
What to watch
Regulatory approval timelines and the redemption of $317.5 million of preferred stock could affect cash flow.
Background
ARRAY and Shoals are both providers of balance‑of‑system solutions for utility‑scale solar and battery storage projects.
Ticker impact
ARRAY Technologies announced a definitive stock-for-stock merger with Shoals Technologies, making it the legal acquirer.
likely pressure as investors assess dilution and integration risks
The merger creates a new combined entity with ARR as the parent; typical merger announcements cause short-term volatility.
Shoals Technologies shareholders will receive ARRAY shares and will own ~65% of the combined company after the merger.
likely upside as the market prices in the acquisition premium
Shoals receives ARRAY shares at a favorable exchange ratio, indicating a premium to current market value.
Market effects
The deal consolidates the utility‑scale solar balance‑of‑system market, potentially raising competitive pressures.
U.S. renewable‑energy equipment sector may see increased M&A activity.
Highlights continued capital allocation toward solar and storage infrastructure worldwide.
Counterpoint
If integration costs exceed expectations, the combined company could face margin compression.
Key entities
- personBrandon Moss
CEO of Shoals Technologies, will lead the combined company
- personKevin Hostetler
CEO of ARRAY Technologies, will serve as special advisor