Phoenix, AZ -- (ReleaseWire) -- 08/03/2020 --SinglePoint Inc., (OTCQB:SING) released a statement that Direct Solar of America, LLC ("Direct Solar"), its majority-owned subsidiary, is entering into a ("LOI") Letter of Intent to acquire the entire Standard Eco Solar, an installer and developer of grid-tied solar electric systems in Arizona, Texas, and Illinois for a combination of stock and cash. SinglePoint and Direct Solar are currently doing due diligence, and SinglePoint is expected to issue common stock immediately the audit and definitive agreements are finalized, facilitating this investment via Direct Solar of America. It is anticipated that the transaction will close the latest by December 2020. In 2018, Standard Eco Solar realized unaudited revenues of 12,331,701 USD, and in 2019, their unaudited revenues stood at 11,345,061 USD. It was operationally profitable in 2018 and 2019.
The CEO Director Solar of America, Pablo Diaz, said, "We are excited to have entered into this LOI and to begin the work necessary to complete this important acquisition. We believe there is a significant opportunity to embark on a roll-up strategy in the solar industry. We see this potential acquisition as an important first step forward for Direct Solar in achieving the goal of being the premier national residential and commercial solar provider. We look forward to reaching a definitive agreement. We intend to add the experienced management and financial strength that comes with this acquisition. Furthermore, we work to build significant long-term value within our business and for the SinglePoint shareholders."
This is their first acquisition from the latest announced countrywide solar expansion via business acquisitions for Direct Solar and SinglePoint. This envisioned acquisition aims to expand the revenue base and increase the gross profits by extending the combined expertise of service offerings. Standard Eco represents a perfect acquisition. It's perfectly positioned to complement and leverage the sales plus customer acquisition platform that Direct Solar has built and had already expanded its footprint around the United States to cover Texas, Arizona, Illinois, and other 31 states where Standard Eco is currently operating in. When this potential transaction is completed, Direct Solar wants to use it as a catalyst for its roll-up strategy of national solar installation that it announced recently.
SinglePoint, Inc. (OTCQB:SING) President, Wil Ralston, said, "Our intended acquisition of Standard Eco complements our overall strategy of providing full-spectrum, market-leading solutions to Direct Solar's solar customers. Of course, as we continue our national expansion through a combination of organic growth and targeted acquisitions that will enhance and deepen our services within our footprint,". "This acquisition leverages many of Direct Solar's core capabilities, and we look forward to the opportunity to expand and grow the overall revenue through expanded solar services," he added.
The combination of Sun Run and Vivint in a merger, which was announced on July 15, 2020, whereby Sun Run paid $3.2 to acquire Vivint, marked the beginning of the consolidation phase in the local residential solar market. Among the main components of the deal was the worth of having a sales channel of high quality. According to the estimates, the Viviant-Sun Run combination will create an entity that has approximately 15% or more of the current US residential market share.
Residential Solar in the United States is estimated to have reached 3% penetration only. Solar-centric solutions added about 40% of the total new electricity that was added. The international solar energy market, in 2018, was valued at 52.5 billion USD, and this value is projected to grow by up to 223.3 billion USD by 2026. This is a CARG growth of 20.5% for the year 2019 to the year 2026.
After a record of Q1 of 2020 and a strong 2019Q, residential solar installation exercises were negatively affected in Q2 by temporary muted demands, delays, and work stoppages. These are complications resulting from the current world pandemic caused and the corresponding economic shutdowns in the U.S. and other parts of the world, which is taking into account the predicted 25% year-over-year reduction in residential solar installations. For the last few weeks, the residential installation is reported to have started to see a rebound in consumer demand, which is most likely to continue growing through to 2021.
The Direct Solar's strategically valued and high quality decentralized virtual sales space serves as the expert concierges for potential homeowners and small commercial clients, helping to guide them through the process of contract and finally giving out customers who have already signed up for installations. What allows Direct Solar to reach more households is that they have expanded their sales platform into about three states in the United States, and the expansion continues.
The specialized concierge sales approach that Direct Solar uses to provide immediate cost savings for the installers. The installers would otherwise settle for hiring costly door-to-door sales professionals. Combining through acquisition or partnering with the good-performing virtualized sales space like Direct Solar in a continuing or post-pandemic world makes perfect sense for Standard Eco, an independent solar installer and contractor.
About SingleePoint, Inc.
SinglePoint is a known fully reporting company that has core holdings in the Solar Energy Services. The Direct Solar of America, which was acquired as a majority-owned in May 2019, currently operates its prominent national solar sales brokerage ideal in 34 US States. The Direct Solar of America, in 2019, managed to virtualize its sales platform vigorously and has now expanded and added offerings to include Direct Solar Commercial and Direct Solar Capital with the main focus on designing, developing, and financing small and mid-size commercial projects and opportunities.
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