SunPower Signs LOI to Acquire Ambia Solar

Core Viewpoint - SunPower has announced the acquisition of Ambia Solar for $37.5 million, which is expected to enhance its revenue and operational efficiency, with anticipated revenue contributions starting in Q1'26 [1][2]. Company Overview - SunPower is a leading residential solar services provider in North America, focusing on solar technology, services, and installation [5]. - Ambia Solar is ranked as the 19th U.S. solar company by installed megawatts and has been recognized as the 140th fastest growing company in the U.S. by Inc. Magazine [6]. Acquisition Details - The acquisition is structured as a non-binding letter of intent, with a closing expected in Q4'25, subject to customary conditions [1][12]. - Ambia's projected revenue for 2025 is $83.6 million, while SunPower's is forecasted at $303.4 million [1]. Leadership and Operational Synergies - Conner Ruggio, Ambia's CEO, will lead SunPower's Blue Raven division post-acquisition, aiming to streamline operations and reduce costs [2]. - The integration of operations is expected to improve operational performance, with Ambia achieving a median order-to-install cycle time of 41.6 days and a customer NPS score of 71 [2]. Market Context - The U.S. residential solar industry is projected to install 11 gigawatts (approximately $28 billion) in 2025 and 2026, with a consolidation trend due to a forecasted 13% reduction in the ITC [2]. - The acquisition is seen as a strategic move to capitalize on market opportunities and enhance SunPower's competitive position [2].