SinglePoint Inc. says its majority-owned subsidiary, Direct Solar of America LLC, has entered into a letter of intent (LOI) to acquire Standard Eco Solar, a developer and installer of grid-tied solar electric systems in Texas, Illinois and Arizona for a combination of cash and stock.
Direct Solar and SinglePoint are currently conducting due diligence and SinglePoint will issue common stock once the definitive agreement and audit are completed, facilitating this investment through Direct Solar of America. The transaction is expected to close no later than December. Standard Eco achieved unaudited revenues of $12,331,703 in 2018 and $11,345,061 in 2019 and was operationally profitable in both years.
“We are excited to have entered into this LOI and to begin the work necessary to complete this important acquisition. We believe this is an important first step forward for Direct Solar in achieving the goal of being the premier national residential and commercial solar provider,” says Pablo Diaz, CEO of Direct Solar of America.
“We look forward to reaching a definitive agreement and to add the experienced management and financial strength that comes with this acquisition, as we work to build significant long-term value within our business and for the SinglePoint shareholders,” he adds.
This is the first acquisition from the recently announced national solar expansion through targeted business acquisitions for SinglePoint and Direct Solar. This intended acquisition will broaden the combined service offering expertise and increase the revenue base in addition to expanding gross profits.
Standard Eco represents an ideal acquisition that is well-positioned to leverage and complement the sales and customer acquisition platform built by Direct Solar that has recently expanded its nearly national footprint to cover 34 states where Standard Eco currently operates. Direct Solar intends to use this potential transaction, when completed, as a catalyst for its recently announced national solar installation strategy.
Photo: Direct Solar of America’s landing page