Array Technologies and Shoals Technologies Agree to $1.32 Billion All-Stock Merger

Array Technologies and Shoals Technologies Group announced on November 4, 2026 that they have entered into a definitive agreement to combine in an all-stock, stock-for-stock merger, with Array serving as the legal acquirer and corporate parent of the combined company, according to a joint announcement carried by Business Insider. The transaction values Shoals at approximately $1.32 billion, combining the two solar equipment makers' hardware and electrical balance-of-system businesses, per reporting from Central Oregon Daily and PV Magazine USA.

Deal Terms and Implied Value

Under the merger agreement, Shoals shareholders will receive a fixed exchange ratio of 1.6931 Array shares for each Shoals share they own, a structure reported by both Business Insider and a regulatory filing summarized by StockTitan. Reuters, as reported by Central Oregon Daily, calculated that this ratio gives the deal a per-share value of $7.86 for Shoals, which it described as a 7.2% discount to Shoals' prior closing price. Because the exchange ratio is fixed rather than tied to a dollar value, Shoals shareholders cannot be certain of the ultimate value of the consideration they receive, since it will depend on Array's market price at the time the deal closes, according to the StockTitan filing summary.

Central Oregon Daily also reported that in premarket trading following the announcement, Shoals shares rose 5.1% while Array shares gained 13.6%, an early market reaction to the terms rather than a verdict on the deal's eventual completion.

Leadership, Brand and Governance

Upon completion of the transaction, Brandon Moss, Shoals' current chief executive, will lead the combined company as CEO, while Kevin Hostetler, Array's current CEO, will transition to the role of Special Advisor, per the companies' joint release carried by Business Insider. The combined company intends to adopt a new corporate name and ticker symbol, though the two companies' own materials differ slightly on timing: Business Insider's release states the rebrand will be announced "in the coming months," while PV Magazine USA reports the new brand and ticker will launch "prior to closing."

The transaction was unanimously approved by the voting members of both companies' boards of directors. Brad Forth, who chairs both boards, did not participate in either board's consideration of or vote on the deal, according to the GlobeNewswire release distributed via StockTitan.

Financial Outlook and Expected Synergies

The companies are projecting, on a preliminary and indicative basis, combined pro forma 2027 revenue in a range of $2.2 billion to $2.4 billion and Adjusted EBITDA of $410 million to $480 million, inclusive of expected first-year synergies, per the joint release reported by StockTitan and corroborated by Central Oregon Daily. That release also states that the combined company expects to deliver more than $100 million of annual Adjusted EBITDA synergies within three years following the closing, driven by corporate overhead efficiencies, selling expense optimization, procurement benefits, operational improvements and increased revenue. In the first year, the companies expect approximately $20 million of incremental run-rate cost synergies and approximately $15 million of incremental run-rate cross-selling synergies, which together equal the roughly $35 million in first-year synergy benefits cited by Central Oregon Daily ($20 million + $15 million = $35 million).

As part of the transaction, Array has committed to redeem $317.5 million of its Series A Perpetual Preferred Stock. That includes $161.3 million to be redeemed at 93% of liquidation preference within 90 days of closing, plus an additional $156.3 million to be redeemed at 96% of liquidation preference in installments of at least $52 million each by the first, second and third anniversaries of the initial redemption, according to the GlobeNewswire release. The companies' preliminary pro forma balance sheet estimates as of December 31, 2026 show basic shares outstanding of 439.5 million, diluted shares outstanding of 442.1 million, net debt of $873.3 million, and a remaining preferred stock liquidation preference of $348.7 million after the initial redemption.

Approvals and Closing Risks

The companies expect the transaction to close in the first quarter of 2027, subject to approval by shareholders of both Array and Shoals, receipt of required regulatory approvals, Nasdaq's authorization to list the combined company's shares, and other customary closing conditions, per Business Insider's report. Specific closing conditions disclosed in the StockTitan filing include expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, the absence of any governmental order blocking the merger, and effectiveness of a Form S-4 registration statement covering the Array shares to be issued to Shoals shareholders.

The merger agreement also includes termination fees: under specified circumstances, Shoals could owe Array a $40.3 million termination fee, while Array could owe Shoals $22.2 million. The agreement restricts Shoals from soliciting competing acquisition proposals, subject to certain exceptions. Shoals has disclosed in its own filing that if the merger is not completed, the company could face negative reactions from financial markets, customers, regulators and employees, would still be required to pay certain transaction-related costs regardless of outcome, and is subject to restrictions on its ordinary business conduct while the deal remains pending.

Bottom Line

The Array-Shoals combination is structured as a straightforward all-stock merger with Array as the surviving parent and Shoals' CEO taking the helm of the combined business, a leadership arrangement that signals continuity for Shoals' commercial strategy inside a larger balance sheet. The fixed exchange ratio means the ultimate value Shoals shareholders realize will move with Array's stock price between now and closing, and the deal still carries standard execution risk tied to antitrust clearance, SEC registration and dual shareholder votes before any first-quarter 2027 completion target can be met.