SolarCity (NASDAQ: SCTY) and ILIOSSON, S.A. de C.V. today announced that they have entered into a definitive agreement for SolarCity to acquire ILIOSS, one of the largest commercial and industrial solar developers in Mexico. Upon close of the acquisition, ILIOSS will operate as an independent business unit of SolarCity. ILIOSS co-founder and Chairman David Arelle and co-founder and Chief Operating Officer Manuel Vegara will lead the new business unit as President and General Manager, respectively. Prior to founding ILIOSS in 2012, Mr. Arelle oversaw the development and construction of thousands of homes and apartments across Mexico, first as a private homebuilder and later as a part of a joint venture with Pulte Homes.
Mexico’s combination of high electricity rates, favorable solar economics and massive solar resources makes it one of the most promising solar markets in the world. As a combined entity, SolarCity and ILIOSS expect to be able to allow many commercial and industrial customers in Mexico to pay less for solar power than they currently pay for electricity. GTM Research expects commercial and industrial solar deployment in Mexico to increase more than 1,000 percent between 2014 and 2020, with more than 1,000 megawatts installed in that timeframe.
Marco Krapels, SolarCity Senior Vice President of Strategy and Global Expansion, initiated the acquisition. The transaction is expected to be completed in August 2015, subject to customary closing conditions.