Array Technologies has agreed to acquire Soluciones Técnicas Integrales Norland (STI Norland), a Spanish solar tracker manufacturer, in a cash-cum-stock deal worth around €570m.

STI Norland has footprint in Iberia and Latin America, which includes the Brazilian solar market.

The Spanish firm has completed or been given orders for tracker systems for over 400 projects around the world. These represent more than 12GW of power generation capacity.

Array Technologies is a US-based provider of utility-scale solar tracker technology. The company claimed that its combination with STI Norland will create the largest supplier of solar trackers in the world.

The combined entity is expected to have top positions in North America, Latin America as well as Europe, which are considered to be the three largest markets for solar besides China.

Array Technologies plans to make use of STI Norland’s existing sales infrastructure and relationships for expediting its growth plans in global markets.

Array Technologies chairman Brad Forth said: “STI Norland brings to Array a proven product line that is ideally suited for complementary markets which will help to accelerate our international expansion plans.

“The increased scale of the combined enterprise also provides opportunities for significant cost reduction as we drive greater volumes with our suppliers and achieve increased leverage on our fixed costs.”

As per the terms of the deal, the US firm will pay €351m in cash and issue 13.9 million of its shares to STI Norland.

STI Norland’s shareholders will be entitled to a further payment of up to €55m in cash, which will be contingent on the amount of EBITDA it generates in excess of €47m in 2021.

STI Norland CEO Javier Reclusa said: “The entire STI Norland team is excited about joining Array and the opportunities that the combination of the two companies will unlock.”

The deal, which is subject to applicable regulatory approvals, is expected to be wrapped up in Q1 2022.  It follows a capital commitment of up to $500m secured by Array Technologies in August 2021 from Blackstone Energy Partners.