ABB set to buy solar firm for $1bn
Power giant announces decision to acquire Power-One
ABB has reported that has agreed to acquire Power-One in deal worth around US $1 billion, or about $6.35 per share in cash. The deal is aimed at positioning ABB as a ‘leading global supplier of solar inverters’, one of the key technologies behind a solar PV system.
ABB CEO, Joe Hogan, said: “Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing on grid parity. Power-One is a well-managed company and is highly regarded as a technology innovator focusing on the most attractive and intelligent solar PV product. The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders.”
Power-One is said to have one of the market’s most comprehensive offerings of solar inverters – ranging from residential to utility-scale applications. It has nearly 3,300 employees and generated $120 million in earning in 2012, from sales of around $1 billion.
“This transaction delivers significant value to our shareholders and will enable Power-One to accelerate its growth. Together, we can better address the growing worldwide demand for innovative, renewable energy solutions and strengthen our global leadership. I believe ABB is the right partner and now is the ideal time for our companies to join forces,” said CEO of Power-One, Richard Thompson.
The transaction is structured as a merger, and is subject to the approval of Power-One’s shareholders, and receipt of customary regulatory approvals.