Enphase Energy Stock Edges Lower on SolarLeadFactory Acquisition

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Ollie Martin
Updated: 15 Mar 2022

Key points:

  • ENPH stock slipped 3% on the news of the SolarLeadFactory acquisition
  • The partnership will bolster the company's digital platform by increasing lead gen efficiency
  • Energy stocks might be a good play for 2022, and Enphase looks well-positioned

Enphase Energy (NASDAQ: ENPH) is no stranger to a rally off the back of positively interpreted news. Today, however, bulls remained vacant on the announcement that Enphase will be acquiring SolarLeadFactory; a provider of high-quality leads for solar installers. The partnership hopes to streamline customer acquisition by increasing lead volumes and conversion rates. 

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Enphase was well-positioned entering 2022, immediately cashing in on the global battery shortage and recording a 53% jump in demand in Q4 last year. Looking ahead to its grassroots homeowner market, the company’s acquisition of SolarLeadFactory will drive its digital platform to new heights of efficiency and streamlined demand. Enphase’s entire network of installers will benefit from the new lead gen capabilities, maximizing healthy sector growth in a future-focused industry. 

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Noting the company’s impressive movements on their digital platform, Badri Kothandaraman, CEO of Enphase state:

“For the past two years, we have executed on our installer digital platform strategy with the acquisitions of Sofdesk for solar design software, DIN’s solar business for proposal and permitting services, 365 Pronto for O&M platform software, and now SolarLeadFactory for high-quality lead generation,”

Adding…

“We chose the SolarLeadFactory team based on their high-quality mindset and operational efficiency. We are pleased to welcome the team and SolarLeadFactory’s customers to Enphase.”

The news didn’t spur much of a reaction this morning, with ENPH stock opening at a loss of just over 3%. Perhaps investors focused on the lack of financials in the announcement, or perhaps an argument exists that the acquisition's effect on future revenue might be limited. Enphase appears a good energy play for 2022; noting, in particular, their own global battery factories in high demand, Biden’s pledge towards clean energy investment, and promising quarterly growth metrics. 

 

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