June 13 (Renewables Now) - Enphase Energy Inc (NASDAQ:ENPH) intends to buy the microinverter business of SunPower Corp (NASDAQ:SPWR) in a deal that it says will speed up the adoption of Alternating Current (AC) solar modules “as the de facto residential solution."
In a press release on Tuesday, US microinverters manufacturer Enphase said it has sealed a definitive agreement for the purchase, intending to pay USD 25 million (EUR 21.3m) in cash and distribute 7.5 million in shares of its common stock. Through the five-year deal, it will become the mircoinverter supplier of SunPower's AC modules and will expand its intellectual property portfolio with more than 140 patents.
According to Enphase, the deal will enhance SunPower's Equinox Home Solar System with a custom line of Enphase IQ microinverters. The Enphase IQ 7XS AC microinverter, which was designed specifically for the SunPower X Series 96-cell PV modules, "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," said Badri Kothandaraman, CEO of Enphase.
As a result of the transaction, Enphase expects annualised revenue contributions of USD 60 million-70 million in the second half of 2019, at a 33%-35% gross margin. It will use its own resources to fund the deal, which is seen to close at the end of the third quarter, pending product qualification and other customary conditions.
Initial shipments of the IQ microinverters are anticipated to be made in the fourth quarter, Enphase said.
(USD 1.0 = EUR 0.852)