AE Acquires PV Powered
Advanced Energy Industries has announced the completion of its acquisition of PV Powered Inc., a leading manufacturer of grid-tied PV inverters in the residential, commercial, and utility-scale markets. The combined company's comprehensive portfolio of inverter products will serve commercial projects ranging from 30-kilowatts to 1 megawatt utility installations, as well as the residential market with 5-kilowatt and smaller inverters. With the addition of PV Powered's product line, Advanced Energy will be able to address the entire spectrum of the emerging and fast-growing solar inverter market.
"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."
Under the terms of the agreement, Advanced Energy paid $50 million in the form of $35 million in cash and $15 million in Advanced Energy's common stock. In addition, there is a $40 million potential earn-out based on PV Powered's full-year 2010 financial results. Throughout 2010, PV Powered will operate as a wholly-owned subsidiary, continuing to sell and support its PV Powered branded inverters.
With the addition of PV Powered, Advanced Energy is revising its guidance for the second quarter of 2010 to be as follows, excluding the effect of the amortization of intangibles related to the PV Powered acquisition:
Total sales of $100 million to $111 million
Fully diluted earnings per share of $0.21 to $0.31
Fully diluted shares of 43.3 million
