ABB and Power-One have agreed to a transaction in which ABB will acquire Power-One for approximately $1 billion equity value.
The acquisition will see ABB assuming the enviable position of being the second largest supplier of solar inverters in the world.
“Solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing in on grid parity,” said ABB’s CEO, Joe Hogan. “Power-One is a well-managed company and is highly regarded as a technology innovator focusing on the most attractive and intelligent solar PV product.”
ABB says the time was right to acquire Power-One given the solar PV sector will experience sustained 10 percent-plus annual growth.
“The acquisition supports the implementation of the division’s strategy for renewable energy and the goal to build on our strength in power electronics,” said Ulrich Spiesshofer, head of ABB’s Discrete Automation and Motion division.
Founded in 1883, ABB is comprised of five divisions and employs 145,000 people. The company hit the headlines recently when it announced it had developed the world’s first circuit breaker for high voltage direct current (HVDC), solving a 100-year-old electricity transmission puzzle. ABB pioneered HVDC technology nearly 60 years ago and has more than half of the world’s installed infrastructure.
Power-One has a 40-year history in the field of power supply products. The company is headquartered in Camarillo, California, and has operations in Asia, Europe and the Americas. Power-One solar inverters are a popular choice in Australia for home solar power systems.
The company also recently released micro-inverters for the Australian market and announced it would be partnering with Panasonic to develop, produce and market energy storage systems for residential and commercial markets.
The ABB transaction is expected to close in the second half of 2013, subject to shareholder and regulatory approvals. ABB says it will finance the transaction out of its own funds.
