Array Technologies and Shoals Technologies Agree to Merge in All-Stock Deal
Array Technologies and Shoals Technologies have signed a definitive agreement to combine in an all-stock merger, joining two of the US solar industry’s biggest hardware suppliers into a single balance-of-system platform. The companies announced the deal on November 4 and held a joint investor call the same morning; they expect it to close in the first quarter of 2027, pending shareholder votes, regulatory clearance and Nasdaq approval.
How the stock swap is structured
Array is the legal acquirer, but Shoals shareholders come out with the larger stake: each Shoals share converts into 1.6931 Array shares, leaving Shoals holders with roughly 65% of the combined company’s basic shares (64.5% on a fully diluted basis) against about 35% for Array holders. Based on estimated year-end 2026 figures, the combined company would have around 439.5 million basic shares outstanding. Shoals chief executive Brandon Moss will run the combined company, while Array chief executive Kevin Hostetler moves into a special advisor role. Brad Forth, who chairs both companies today, becomes chairman of the new ten-member board, split evenly between directors from each legacy board plus Forth and Moss. A new corporate name and ticker are due to be announced in the coming months.
Pairing trackers with the wiring that connects them
The industrial logic is straightforward: Array makes the structural side of a solar farm’s balance of system — trackers, racking and foundations that move panels to follow the sun — while Shoals makes the electrical balance-of-system products that wire those panels into a functioning plant and, increasingly, into battery storage. The two product lines sit next to each other in the same construction sites but are usually sourced from separate vendors. Moss called signing day “an important milestone for Shoals, Array and the customers we serve,” while Hostetler described the deal as “a compelling opportunity to create meaningful value for customers of both Array and Shoals.” The companies estimate that only about 20% of projects between 2025 and 2026 used both companies’ products together, which they are treating as the gap the merger is meant to close, alongside a push into data-center power infrastructure where both firms already sell separately.
Synergy targets and a wide 2027 guidance range
Management is guiding to roughly $20 million of run-rate cost synergies and $15 million of cross-selling synergies in the first year, building toward more than $100 million of incremental annual adjusted EBITDA within three years of closing. For 2027, the companies gave preliminary — explicitly not audited and not a projection — combined revenue guidance of $2.2 billion to $2.4 billion and adjusted EBITDA of $410 million to $480 million including first-year synergies. They also pointed to Shoals’ roughly $1.6 billion of tax amortization and $237 million of net operating losses as of September 30, which management expects to limit cash taxes for several years. Net debt to adjusted EBITDA is estimated at 2.6 times at the end of 2026, targeted to fall below 2 times by the end of 2027.
Unwinding Array’s preferred stock
A less headline-grabbing but material piece of the deal addresses Array’s $317.5 million of outstanding Series A Perpetual Preferred Stock. The combined company will redeem $161.3 million of it at 93% of liquidation preference within 90 days of closing, then retire at least $156.3 million more at 96% of liquidation preference in installments of $52 million or more on the first three anniversaries of that initial redemption. Any remaining balance can be redeemed at 96% within 48 months of closing, or at full value after that. Management expects the unwind to cut cash distributions by close to $100 million over five years and says no other debt or preferred refinancing is planned around the transaction.
The merger lands as US solar developers lean more heavily on combined solar-plus-storage designs — co-located battery storage now accounts for more than 16% of new US solar capacity, according to federal data — and as financing keeps moving toward utility-scale projects generally, exemplified the same week by Panamint Capital’s $1.8 billion loan for a Texas solar project built on a former coal site.
Sources: Array Technologies and Shoals Technologies joint press release, SEC Form 8-K Exhibit 99.1, November 4, 2026 (deal terms, exchange ratio, leadership, synergy and 2027 guidance figures, preferred stock redemption terms, executive quotes); Solar Power World, “Array Technologies and Shoals plan to merge companies,” November 2026 (independent confirmation).
Illustrative image. Photo: Dietmar Rabich, CC BY-SA 4.0, via Wikimedia Commons — source
