Otovo, a distributed energy services provider, has raised $7.25 million through a private placement to help finance its proposed acquisition of Israel-based solar energy services company Green Panel Solar Energy Systems.

Otovo plans to use the proceeds to fund the acquisition, provide working capital, strengthen its balance sheet, and continue investing in its Endurance artificial intelligence platform. The funds may also support additional acquisitions.

In June of this year, Otovo entered into a non-binding letter of intent to acquire Green Panel for $11 million, to be funded through a combination of cash and Otovo shares.

Green Panel provides behind-the-meter energy services and operates a solar power command-and-control center in Israel. According to Otovo, the acquisition would add Israel and Hungary to its operating footprint and expand its presence in Europe and the Middle East.

The Green Panel acquisition has not been completed because the letter of intent remains non-binding and definitive agreements have not yet been executed.

“This financing gives us the capital to keep executing on the growth strategy we laid out at the time of our merger,” said William J. (John) Berger, CEO at Otovo. “This round lets us build on that momentum while we invest in the AI technology that sets our platform apart. We’re grateful for the continued support of our investors as we execute on our strategy to become the leading global technology-enabled energy services company, with the near-term goal of achieving positive cash flow from operations.”

Otovo said the private placement brings the total capital it has raised over the past nine months to approximately $34 million. The company completed a merger in December 2025 and has since pursued acquisitions in operations and maintenance, solar, energy storage, and electric vehicle charging services.

In January, the company entered into a definitive agreement to acquire Solar Service Professionals (SSP), a California-based solar service provider. With this acquisition, Otovo plans to convert the existing California base of SSP customers to its subscription service, expecting this initiative to be accretive to net income in 2026.

Additionally, in 2025, Otovo signed an agreement to acquire select assets of Soly Holding, a Netherlands-based residential solar company with operations across the Netherlands, Belgium, Germany, Austria, Italy, and the U.K. It includes Soly’s installed customer portfolio of around 24,000 residential solar customers, associated customer data, intellectual property, domains, and service vehicles, as well as a pipeline of solar projects.

Public market financing in the solar sector totaled $1.1 billion in the first quarter of 2026, compared to $20 million raised in Q1 2025, according to Mercom’s Q1 2026 Solar Funding and M&A report.