CleanSpark completes acquisition of solar and energy-storage developer Solar Watt Solutions of Southern California

CleanSpark Inc (NASDAQ:CLSK) announced Wednesday that it has completed the strategic acquisition of Solar Watt Solutions Inc, a commercial and residential solar and energy-storage developer. 

Based on the achievement of certain performance objectives, CleanSpark said that the total consideration for the transaction will be up to 477,703 company shares and up to $3,850,000 in cash.

The company said the acquisition is expected to immediately expand and accelerate CleanSpark’s residential initiative by integrating an experienced energy storage and solar sales and installation team.

READ: CleanSpark unveils mVoult residential energy management solution for homeowners

Solar Watt, based in Carlsbad, California, provides solar and alternative energy solutions for homeowners and commercial businesses throughout Southern California. It has been focused on serving the fire-prone communities throughout California by utilizing the Self Generation Incentive Program (SGIP), which provides homeowners who have medical needs and reside in vulnerable zones with the opportunity to add energy storage to their homes at little or no cost. 

CleanSpark said its mVoult (mvoult.com) product line for residential microgrids will provide opportunities for both companies to expand quickly throughout the state and beyond.

“We are extremely excited to join the great team at CleanSpark,” said David Watt, who founded Solar Watt in 2009, in a statement. “With their products and resources behind Solar Watt, we will be able to expedite growth in the California area. We anticipate scaling up and, being able to offer new product lines while continuing to provide the excellent service our customers have come to expect, which is the foundation for our success.”

CleanSpark CEO Zachary Bradford noted that the acquisition added more than $10 million dollars of executed contracts to the company’s backlog. 

“This backlog immediately positions CleanSpark as a player in the direct-to-consumer California residential microgrid market,” Bradford said.  

“In addition to executing on their existing pipeline, Solar Watt will form the backbone of the Southern California team for CleanSpark’s new residential mVoult product line. We will continue to devote our efforts to the one-to-many sales approach nationwide through partnerships with companies similar to Solar Watt, but this acquisition will allow us to rapidly scale mVoult and residential sales in Southern California where we have a local presence and a large sales footprint.”

CleanSpark CFO Lori Love added: “This acquisition brings a significant pipeline to drive strong revenue growth immediately as part of our new residential initiative. We anticipate that the acquisition will contribute approximately $20 million in revenue over the next 12 to 18 months and potentially more as we expand into additional territories with critical energy needs.”

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