SUNation Energy, Inc. (NASDAQ:SUNE) stock rose Monday as investors reacted to a definitive merger agreement with solar manufacturer Suniva and a broader rally in technology stocks. The Nasdaq was up almost 2%, supporting risk appetite across the market.

SUNation, Suniva Strike Merger Deal

SUNation Energy and Suniva on Monday signed a definitive reverse merger agreement that would combine solar manufacturing and installation businesses to create a larger U.S.-focused solar platform.

The combined company is expected to operate under the Suniva name while maintaining SUNation’s Nasdaq listing. The deal values pre-merger SUNation shareholders’ equity at about $2.26 per share, representing a roughly 100% premium to the stock’s latest closing price.

Merger Aims To Boost Domestic Solar Capacity

The companies said the combination will pair Suniva’s U.S.-based solar cell manufacturing with SUNation’s residential, commercial, and energy services operations in high-electricity-cost markets.

“We’ve spent the last two years transforming SUNation into a stronger, more disciplined, and more resilient platform, and this proposed merger with Suniva is the next logical step in that journey,” SUNation CEO Scott Maskin said.

Suniva CEO Tony Etnyre said the transaction would help accelerate the company’s expansion plans.

“Access to U.S. public capital markets means we can move faster, invest deeper, and expand further into the domestic manufacturing capacity this country urgently needs,” he said.

Transaction Details And Growth Strategy

The transaction is expected to close in the second half of 2026, subject to shareholder approvals, SEC clearance of a Form S-4 registration statement, Nasdaq listing approval, and other customary conditions.

Following the merger, pre-merger Suniva shareholders are expected to own about 98.2% of the combined company, while SUNation shareholders would own about 1.8%, subject to certain adjustments.

Suniva currently operates a 1-gigawatt solar cell facility in Georgia and plans to add 4.5 gigawatts of capacity in South Carolina. The companies said the merger is designed to strengthen the domestic solar supply chain, support margin expansion, and improve access to U.S. capital markets for future growth.

SUNE Stock Price Activity: SUNation Energy shares were trading up 169.91% at $3.045 at the time of publication on Monday, according to Benzinga Pro data.

Photo via Shutterstock