Enphase Energy, Inc. (NASDAQ: ENPH) shares rose after the company announced plans to acquire SunPower’s (NASDAQ: SPWR) Microinverter business for $25 million and 7.5 million shares of common stock.
Key highlights of the acquisition include: Advancing AC Modules (ACM) as the future of residential solar. The buyout will also enhance SunPower’s Equinox™ Home Solar System with a custom line of Enphase’s IQ microinverters for use with SunPower AC Modules
Enphase expects to add $60-$70 million annualized revenue in second half of 2019 at 33%-35% gross margin.
The acquisition will add over 140 patents to Enphase’s strong IP portfolio. The deal is expected to close by end of the third quarter of 2018 with initial IQ shipments in the fourth quarter; $25 million cash is expected 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, president and CEO of Enphase Energy.
"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."
IQ 7 is Enphase’s seventh-generation microinverter platform leading the industry with its software-defined architecture, broad regulatory compliance, advanced “Smart Grid” features, and a high fire safety rating.
Enphase price surged $1.38, or 30.7%, to $5.88, while shares in SunPower rose four cents to $7.90
