Under the agreement, Advanced Energy will acquire PV Powered for a purchase price of up to $90m consisting of $50m to be paid at closing in the form of $35m in cash and $15m in Advanced Energy’s common stock, as well as up to $40m in a potential earn-out based on PV Powered’s 2010 financial results.
The transaction will be subject to other customary closing conditions and regulatory approvals including Hart Scott Rodino. Throughout 2010, PV Powered will operate as a wholly-owned subsidiary, continuing to sell and support its own branded inverters.
Hans Betz, CEO of Advanced Energy, said: “The addition of PV Powered’s transformer-based inverters with power levels below 500kW for the small to mid range commercial inverter market allows Advanced Energy to target a portion of the market that we have not yet addressed.
“As a combined company, our comprehensive portfolio of both transformerless and transformer-based inverter products will serve the entire spectrum of commercial project sizes from 30kW to multi-megawatt utility installations, placing us firmly at the heart of the emerging and fast-growing solar inverter market.”
