ABB set to buy solar firm Power-One for $1bn.
ABB has agreed to acquire renewable energy equuipment maker Power-One in deal worth around $1 billion, or about $6.35 per share in cash, according to a statement from the Swiss electrical giant.
The deal is aimed at positioning ABB as a "leading global supplier of solar inverters", one of the key technologies behind a solar PV system.
Joe Hogan, ABB CEO, said: "Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing on grid parity. Power-One is a well-managed company and is highly regarded as a technology innovator focusing on the most attractive and intelligent solar PV product.
"The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders."
Power-One, which is based in the United States, is said to have one of the market's most comprehensive offerings of solar inverters - ranging from residential to utility-scale applications. It has nearly 3,300 employees and generated $120m in earnings in 2012 - from sales of around $1 billion.
Richard Thompson, CEO of Power-One, said: "This transaction delivers significant value to our shareholders and will enable Power-One to accelerate its growth. Together, we can better address the growing worldwide demand for innovative, renewable energy solutions and strengthen our global leadership. I believe ABB is the right partner and now is the ideal time for our companies to join forces."
The deal is subject to the approval of Power-One's shareholders, and receipt of regulatory approvals.
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