SunPower to Acquire Sunder Energy in $40M Cash-and-Stock Deal
SunPower (Nasdaq: SPWR) announced it will acquire Utah-based Sunder Energy, the 11th-largest U.S. solar company by installed megawatts, in a transaction valued at $40 million in cash plus 10 million shares of stock.
The deal, set to close this week pending shareholder approval, marks a major expansion for SunPower, which will nearly double its operational footprint from 22 to 45 states and add significant sales capacity. Sunder, which primarily operates under the third-party ownership (TPO) model, is forecasting $74 million in 2025 revenue on 46 MW of contracted solar sales. That sales volume could ultimately generate as much as $247 million in combined sales and EPC revenue for SunPower.
The acquisition is expected to immediately add $74 million in sales revenue starting in Q4 2025, with EPC contributions ramping up over the following year. SunPower financed the deal through a private offering of convertible debentures managed by Cantor Fitzgerald.
CEO T.J. Rodgers described the transaction as SunPower’s “top acquisition priority” and noted that the IRS’s recent decision to preserve ITC subsidies for TPO-funded residential systems strengthens the deal’s outlook. He highlighted that the merger will double the company’s 1099 salesforce headcount, add more than 5,500 new solar contracts annually, and raise the average selling price per installation by 14%.
Eric Nielsen, president of Sunder Energy, said the merger pairs SunPower’s brand and leadership with Sunder’s high-volume sales model, positioning the combined company as a stronger competitor in a consolidating residential solar industry.
The U.S. residential solar market is forecast by SEIA to add nine gigawatts of capacity in 2025 and 2026, worth roughly $27 billion. Amid that growth, smaller firms are being acquired or consolidated, creating opportunities for publicly traded companies like SunPower to expand through acquisitions.
SunPower expects the deal to drive record revenue and profitability by late 2025, with immediate sales gains followed by EPC growth in 2026. Rodgers said the acquisition will deliver operating profits in Q3 and Q4 2025, marking a turnaround after years of losses under the company’s previous structure.
By Charles Kennedy for Oilprice.com
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