XL - XL Fleet completes Spruce Power acquisition

XL Fleet ( NYSE: XL ) has closed the acquisition of privately held solar-as-a-service provider Spruce Power for total cash consideration of ~$58M.

Based in Houston, Texas, Spruce Power owns and operates residential rooftop solar systems in the U.S. with more than 52,000 subscribers. The business generated $15M of net income and $51M of adj. EBITDA during the twelve months ended June 30, 2022

In connection with the acquisition of Spruce Power, XL Fleet ( XL ) also unveiled its new corporate strategy to offer subscription-based solutions for rooftop solar, battery storage and EV charging. The strategy focuses on: leveraging the Spruce Power platform to become a key provider of subscription-based solutions for distributed energy resources, growing profitably by focusing on channels with the lowest customer acquisition cost and increasing shareholder value.

To support the plan, current Spruce Power CEO Christian Fong has been appointed as President of XL Fleet ( XL ) and to the XL Fleet Board of Directors. The company plans to appoint Christian Fong as CEO of XL Fleet on or prior to Feb 15, 2023. Eric Tech will continue as XL Fleet CEO until the planned appointment of Christian Fong.

XL Fleet ( XL ) has also launched a review of strategic alternatives for its Drivetrain segment to streamline operations. The review is likely to complete by the end of 2022.

Furthermore, the company plans to change its corporate name to reflect its focus on providing subscription-based solutions for rooftop solar, energy storage, EV charging and other energy-related products to homeowners and small businesses.

XL shares +3.42% pre-market

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