Suntuity Renewables, a U.S.-based residential solar company, has reached a $190 million business combination deal with Beard Energy Transition Acquisition Corp., a special acquisition company (SPAC).

Suntuity will likely finalize the agreement in the last quarter of 2023, resulting in its listing on the New York Stock Exchange.

Dan Javan, President and CEO of Suntuit, said, “In taking this next step to become a publicly traded company, we intend to accelerate our growth, broaden our focus to include comprehensive home electrification solutions and services across the country and establish ourselves as a significant industry participant in the renewable energy transformation.”

Assuming no redemptions by Beard’s public stockholders, the combined company is anticipated to have a proforma enterprise value of $249 million. The transaction will generate around $255 million in gross cash proceeds. Additionally, Suntuity has already secured $15 million in funded debt financing as part of the transaction.

After the combination, Suntuity’s current equity holders will transfer 100% of their equity to the combined company and maintain approximately 40% ownership. Beard’s existing public stockholders are expected to possess around 48% ownership of the combined company. These figures assume no redemptions by Beard’s current public stockholders.

“We are looking forward to partnering with Dan and his team to grow Suntuity,” said Gregory A. Beard, CEO of Beard. “When searching for a potential partner in this transaction, we sought to identify a high-growth business in the renewable energy space with a clear path to scalability and a public-ready management team; we believe Suntuity satisfies each of these criteria and much more. Dan and his team are revolutionizing residential solar access in the United States, and we look forward to supporting them in their mission through this combination.”

Vinson & Elkins is serving as the legal advisor to Beard. ROTH Capital Partners is the capital markets advisor for the transaction, and Loeb & Loeb is providing legal advisory services to Suntuity.

Suntuity has installed over 9,500 residential systems across 25 states in the U.S. as of April 2023. Since expanding into residential solar in 2017, Suntuity has facilitated opportunities for over 200 MW of solar power while providing electrification solutions, power generation, storage installations, and third-party financing options for residential customers. The company claims a robust backlog of over 1,100 projects valued at $55 million.

According to Lawrence Berkeley National Laboratory, there has been an increase in solar adoption among households with lower incomes in the United States over the past 11 years.

A total of 27 solar merger & acquisition transactions was recorded in the first quarter of 2023, compared to 38 deals quarter-over-quarter, according to Mercom’s Q1 2023 Solar Funding and M&A Report.