Enphase to Acquire SunPower’s Microinverter Business
Enphase will acquire the business for $25 million in cash and 7.5 million shares from its common stock
Enphase Energy and SunPower Corporation have announced the signing of a definitive agreement under which Enphase will acquire SunPower’s microinverter business. Enphase will be acquiring the microinverter business for $25 million in cash and 7.5 million shares of Enphase’s common stock.
The transaction is expected to be closed by the end of the third quarter of 2018, subject to product qualification and other closing conditions under the definitive asset purchase agreement.
Key Highlights of the Acquisition
- Advancement of AC Modules (ACM) as the future of residential solar.
- Enhancing SunPower’s Equinox Home Solar System with a custom line of Enphase’s IQ microinverters for use with SunPower ACM.
- Enphase expects to add $60-70 million annualized revenue in second half of 2019 at 33-35 percent gross margin.
- Adding over 140 patents to Enphase’s strong IP portfolio.
- $25 million cash to be funded from Enphase’s balance sheet in two installments.
“We are pleased to become the microinverter supplier for SunPower’s AC modules,” said Badri Kothandaraman, the president and CEO of Enphase Energy.
“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,” said SunPower CEO Tom Werner.
Mercom previously reported, in December 2017, Enphase Energy opened its first Indian research and development (R&D) center in Bangalore, Karnataka.
According to a company statement, Enphase has shipped approximately 17 million microinverters, and more than 760,000 Enphase systems have been deployed in over 110 countries.
Image credit: By Maury Markowitz [CC BY-SA 3.0], from Wikimedia Commons