Canadian Solar has signed an agreement to acquire Recurrent Energy, a North American solar energy developer, from Sharp for approximately $265m.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to increase total solar project pipeline by approximately 4GW to 8.5GW for Canadian Solar, and its late-stage project pipeline by approximately 1GW to 2.4GW.

Canadian Solar Chairman and chief executive officer Dr Shawn Qu said: "By combining Canadian Solar’s global reach and experience with Recurrent’s proven solar energy development track record in the US and Canada, we are significantly expanding the scale of our solar energy development platform.

"At the same time, this transaction broadens our strategic options to extend our business model from development and construction into potential ownership and operation of solar power plants as we work to create additional value for our shareholders."

Planned to be completed before the end of the first quarter of 2015, the transaction also expands Canadian Solar’s project development and financing capabilities.

Recurrent Energy chief executive officer Arno Harris said: "We look forward to close collaboration with our new parent company to bring solar power further into mainstream energy markets."