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Enphase Energy Agrees to Buy SunPower’s Microinverter Business


On Wednesday Enphase Energy (NASDAQ:ENPH) announced that it has entered into a definitive agreement to buy SunPower’s microinventer business segment for $25 million in cash and 7.5 million shares of the company.

Subject to fulfillment of product qualification as well as other conditions mentioned int he definitive asset purchase, the transaction is expected to close by the third quarter.

Highlights of the agreement according to the company’s press release are as follows:

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 (NASDAQ:ENPH) expects to add $60-$70 million 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

$25 million cash to be funded from Enphase’s balance sheet in two installments

CEO and President of Enphase Energy, Badri Kothandaraman stated, “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.”

CEO of SunPower, Tom Werner, stated, “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.”

Enphase Energy (NASDAQ:ENPH) projects that the acquisition will add almost $60-$70 million annualized revenues by the second half of 2019 with approximately 33-35% gross margin. The acquisition also gives Enphase an add of almost 140 new patent rights to its existing portfolio.

The acquisition of SunPower’s microinverter business will also allow Enphase Energy to integrate its seventh generation IQ microinverter technology with the acquired company’s AC modules used in home solar system.

Enphase Energy is a global energy technology company that delivers smart, easy-to-use solutions that connect solar generation, storage and management on one intelligent platform. The company has shipped 17 million microinverters so far and over 760,000 Enphase systems have been deployed in over 100 countries.

Shares of the stock (NASDAQ:ENPH) have seen gains of 465% in the last year.

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