Orion Energy Systems, Inc. (NASDAQ: OESX) has acquired Stay-Lite Lighting, a nationwide lighting, and electrical maintenance service provider, for a cash purchase price of $3.7 million, subject to closing adjustments.
In addition, based on the relative gross profit growth of Stay-Lite Lighting's legacy business over the next two calendar years, Orion could pay up to an additional $0.70 million in earn-out.
Stay-Lite Lighting has annual revenues of approximately $9 million.
The acquisition accelerates the growth of the Orion Maintenance Services business. Stay-Lite Lighting will operate as Stay-Lite, an Orion Energy Systems business.
The acquisition will also allow Orion to continue to grow its recurring revenues and more quickly support customers' needs.
"The acquisition of Stay-Lite Lighting into the Orion portfolio adds high-profile retail customers, self-performing capabilities in 15 states, and a nationwide network of service coverage," stated Mike Altschaefl, Orion CEO and Board Chair.
Orion held cash and equivalents of .74 million as of September 30, 2021.
Price Action: OESX shares are trading lower by 1.48% at $3.66 on the last check Wednesday.
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