Advanced Energy has completed its purchase of PV Powered, enabling the company to service commercial utility installations between 30kW and 1MW and the residential sector for 5kW or smaller inverters.
“This is an exciting moment in our company as we take the next steps in our strategy to diversify our revenues and expand our solar inverter business,” said Dr. Hans Betz, chief executive officer. “By offering one of the industry’s most comprehensive product lines from residential to utility scale inverters, Advanced Energy is positioned to be one of the leading worldwide suppliers of inverters.”
According to the terms of agreement, Advanced Energy paid $50 million: $35 million cash and $15 million in Advanced Energy common stock. Additionally, there is a $40 million potential earn-out based from PV Powered’s full-year 2010 financial results. For the rest of this year, PV powered will operate as a wholly-owned subsidiary, continuing its sales of PV Powered branded inverters.
With its new acquisition, Advanced Energy has revised its guidance for its second quarter 2010 as follows, not including the effect of the pay back for intangibles related to the PV Powered acquirement: Total sales of $100 million to $111 million, fully diluted earnings per share of $0.21 to $0.31 and fully diluted shares of 43.3 million.