ARRAY and Shoals Agree All-Stock Merger, Shoals Holders to Own 65%

• ARRAY Technologies and Shoals Technologies agreed on Nov. 4 to merge in an all-stock deal, with Shoals holders owning about 65%.
• The tracker maker and the EBOS supplier see pro forma 2027 revenue of $2.2-2.4 billion and over $100 million of synergies.
• Shoals CEO Brandon Moss will lead the group; closing is expected in the first quarter of 2027 after both shareholder votes.

ARRAY Technologies and Shoals Technologies Group agreed on Nov. 4 to combine in an all-stock merger that would leave Shoals shareholders with about 65% of the enlarged company, the two US solar equipment makers said in a joint statement.

Shoals investors will receive 1.6931 ARRAY shares for each Shoals share. ARRAY, which supplies structural balance-of-system gear such as solar trackers, will be the legal acquirer and parent. Shoals makes electrical balance-of-system (EBOS) equipment for utility-scale solar and battery storage. Its chief executive, Brandon Moss, will run the combined group, while ARRAY CEO Kevin Hostetler becomes a special advisor. Brad Forth, already chairman of both companies, will chair a 10-member board with four independent directors from each side. A new name and ticker are due in the coming months.

The deal landed alongside quarterly results that pointed in opposite directions. Shoals said third-quarter revenue rose 43.8% to $195.3 million and raised its 2026 outlook. ARRAY's revenue fell 16.1% to $330.2 million, and it cut its full-year guidance to $1.34 billion to $1.40 billion, even as its orderbook hit a record $2.6 billion.

The deal in numbers

• 65% of basic shares to Shoals holders and 35% to ARRAY holders; 64.5% and 35.5% on a fully diluted basis.
• $2.2 billion to $2.4 billion of pro forma 2027 revenue and $410 million to $480 million of adjusted EBITDA, including year-one synergies, in preliminary estimates.
• About 19.3% adjusted EBITDA margin at the midpoints of the 2027 ranges (list.solar calculation).
• 12.5% above the $2.05 billion midpoint of the two companies' combined 2026 revenue guidance (list.solar calculation).
• More than $100 million of annual adjusted EBITDA synergies expected within three years of closing.
• $525.5 million of combined third-quarter revenue reported by the two companies (list.solar calculation).
• $317.5 million of ARRAY's Series A preferred stock to be redeemed, starting with $161.3 million within 90 days of closing.

The merged group plans to push into battery storage and data center infrastructure. Last month ARRAY added automated hail alerts for its Australian trackers.

"This transaction represents a compelling opportunity to create meaningful value for customers of both ARRAY and Shoals by bringing together our complementary strengths," Hostetler said.

The merger needs approval from shareholders of both Nasdaq-listed companies, regulatory clearances and a Nasdaq listing for the new shares. The companies expect to close in the first quarter of 2027.