Array Technologies Buys STI Norland in $652 million Tracker Deal

American solar tracker firm Array Technologies is in advanced talks to acquire Spanish tracker manufacturer Soluciones Técnicas Integrales Norland (STI Norland) in a deal valued at around €570 million (US$652 million) in cash (€351 million/US$401 million) and stock. The  deal closure is expected by Q1 of 2022. In 2020, STI generated revenues and EBIDTA of around €200 million

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Javier Reclusa, CEO of STI Norland, and the rest of the company’s senior management team, will remain with Array Technologies post the deal.

The deal marks a new interest in the tracker segment following a sharp uptick in overall solar capacities, especially utility scale solar, where trackers find their best uses. On top of that has been the growth in Bifacials and MonoPERC at the expense of polycrystalline modules, again creating larger opportunities for tracker firms. That is one reason the category has also seen a series of startups strive to enter and make an impact.

Array Technologies with its DuraTrack products claim to have the have the lowest lifetime cost of any tracker system and exceptional wind and snow load performance, making them a good pitch for developing markets like Brazil, where STI Borland is quite strong.

Post the deal, Array hopes to get 30% of its revenues from international projects in 2022, besides driving cost reductions with greater economies of scale. Key markets like the US, Europe and Latin America will see the firm emerging stronger.

“The combination of Array and STI Norland creates the global leader in trackers with leading positions in every major market for solar outside of China and India,” said Brad Forth, Chairman of Array Technologies. The specific reference to China and India is important because these markets remain out of bounds for many western tracker firms on cost and margin concerns.

“Array expects that the combined business can generate in excess of US$200 million of Adjusted EBITDA in 2022 before synergies,” it said in media release.

The deal comes even as Array had announced a loss in its last quarter earnings, hit by delays as well as rising costs that impacted margins.

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