Enphase Energy will be acquiring SunPower’s microinverter business for $25m in cash and 7.5 million shares of Enphase common stock.
Highlights of the acquisition include
Advances AC Modules (ACM) as the future of residential solar
Enhances SunPower’s Equinox Home Solar System with a custom line of Enphase’s IQ microinverters for use with SunPower AC Modules
Enphase expects to add $60-$70m annualized revenue in second half of 2019 at 33%-35% gross margin
Adds over 140 patents to Enphase’s strong IP portfolio
Expects to close by end of the third quarter of 2018 with initial IQ shipments in the fourth quarter
$25m cash to be funded from Enphase’s balance sheet in two installments
Enphase Energy president and CEO Badri Kothandaraman said: “We are pleased to become the microinverter supplier for SunPower’s AC Modules.
“The IQ 7XS 320W AC microinverter in an ACM strongly complements SunPower’s high efficiency solar cells, communication and racking to create a high performance, high quality and easy-to-use Equinox Home Solar System, providing exceptional value to homeowners, dealers and architects.”
IQ 7 is Enphase’s seventh-generation microinverter platform leading the industry with its software-defined architecture, broad regulatory compliance, advanced ‘Smart Grid’ features, and a high fire safety rating.
The IQ 7XS microinverter offers 97.5% CEC efficiency and was designed specifically for the SunPower’s X Series 96-cell PV modules with peak AC output power of 320W and a Maximum Power Point (MPP) tracking range of 53-64V.
SunPower CEO Tom Werner said: “SunPower customers will continue to see the same quality, high performance that they see now as Enphase exclusively co-develops microinverters for our industry leading residential Equinox solar product.
“As a result of this strategic partnership, SunPower looks forward to benefitting from Enphase’s expertise, allowing us to continue containing costs, leveraging R&D support and helping streamline our business priorities.”
The transaction is expected to close at the end of the third quarter of 2018 subject to product qualification and other closing conditions under the definitive asset purchase agreement.
Source: Company Press Release