Apr 1 2010
A global leader in solar-power generation, Advanced Energy Industries, has signed a merger agreement to acquire PV Powered, leading provider of solar invertors. This acquisition is expected to increase Advanced Energy Industries’ revenues and be neutral to 2010 GAAP net income.
PV Powered is one of the top manufacturers of grid-tied photovoltaic inverters for residential and commercial sector. PV Powered’s inverters range from 1 to 5 kW for the residential market and 30–260 kW for the commercial market.
According to Advanced Energy Industries’ CEO, Hans Betz, PV Powered acquisition will reinforce their presence in North America’s solar inverter market. Using transformer-based inverters from PV Powered will allow Advanced Energy Industries to focus on small- and medium-range commercial market. This acquisition will also increase Advanced Energy Industries’ portfolio for transformerless and transformer-based inverter systems that can fulfill demands from 30 kilowatts to multi-megawatt utility purposes.
PV Powered’s CEO, Gregg Patterson, expressed his happiness about this merger agreement and said that both companies share similar mission to deliver low-cost products. He added that this acquisition will expand their product portfolio in the solar inverter market.
As per the merger agreement, Advanced Energy Industries will pay approximately $90 million, with $35 million in the form of cash and $15 million in common stock. The remaining $40 million will be paid based on PV Powered’s 2010 financial results. PV Powered will run its business as a wholly owned subsidiary unit in 2010. The business deal will be subject to regulatory approvals and other customary closing conditions.
Advanced Energy Industries expects that inverter sales will bring in $40–50 million, with $10-15 million from the residential sector and $30-35 million from the commercial market. A gross margin on solar inverter products is expected to be around 26–29% with operating expenses of $3–4 million.
Needham & Company was the financial advisor in this business transaction.
Source: http://www.advanced-energy.com/