ABB Acquires Solar Inverter Company, Power-One For $1 Billion
Based in Zurich, ABB is a robotics corporation focused on power and automation technologies. ABB generated around $40 billion in 2011 revenues and has 145,000 employees. Today ABB has acquired Power-One, a company that develops solar inverters. Solar inverters are used for channeling solar energy from electricity grids.
ABB offered Power-One stockholders $6.35 per share, which is a 57% premium of the company’s closing share price as of Friday. This values the deal at about $1 billion. Power-One will help increase ABB’s market share in the global solar power market. This market is expected to grow continuously over the next decade.
Unfortunately, the solar power industry is vulnerable to the global economic slowdown. Companies like Solyndra and Suntech Power has seen demand for their products drop. Government subsidies for wind and solar projects have been reduced also.
Power-One has been doing extremely well as they reported a pretax profit of about $120 million last year. Power-One employs over 3,000 people in the U.S., China, and Slovakia according to a recent company statement. Unfortunately, the company’s share price dropped 66% from their high in 2010.
This deal is expected to close in the second half of this year.