Otovo acquires SunSystem Technology

Otovo ASA has announced its intent to acquire SunSystem Technology (SST) for up to $2.1 million as part of a strategic expansion into the U.S. market. The proposed acquisition, detailed in a non-binding letter of intent, underscores Otovo's ambition to grow its operations and maintenance services for distributed generation assets across 14 states, enhancing its position in the American energy market.

The financial terms of the deal involve an initial cash payment of approximately $770,000 upon closing, complemented by a potential three-year earn-out of up to $1.3 million. This earn-out will be contingent on net income targets and is expected to be settled in a mix of cash and Otovo shares. SST's 2025 revenue figures stood at roughly $14 million, suggesting that the acquisition represents a modest enterprise value to revenue multiple of 0.15x, assuming maximum earn-out fulfillment.

This acquisition is strategically aligned with Otovo's ongoing growth initiatives, as it seeks to capitalize on SST's established market presence and operational expertise. Integrating SST with Otovo's Endurance AI platform will enable enhanced automation of core functions, such as customer intake and supply chain management. The move aims to fortify relationships with equipment manufacturers and asset owners by delivering services across multiple states more efficiently.

This transaction is part of Otovo's broader strategy to expand through targeted acquisitions. Following a series of similar deals with companies like Zolar, Soly, and others since its December 2025 merger, Otovo has significantly bolstered its maintenance service capabilities in Europe and the U.S. By acquiring SST, Otovo is poised to further enhance its competitive stance in the operations and maintenance sector, especially at a time when the demand for sustainable energy solutions is intensifying.

While the deal is still subject to due diligence, corporate approvals, and definitive agreements, it marks a crucial step in Otovo's efforts to scale its data-driven approach to energy services. As regulatory and market conditions evolve, the company's continued integration of such acquisitions is likely to play a pivotal role in its long-term growth trajectory.