Shares of Enphase Energy Inc ENPH surged higher by more than 35 percent Wednesday morning in reaction to an acquisition announcement.
What Happened
Enphase said it acquired SunPower Corporation SPWR's microinverter business for $25 million in cash and 7.5 million shares of Enphase common stock. The acquisition adds more than 140 new patents to Enphase's already "strong" IP portfolio and advances AC Modules as the future of residential solar, the company said.
Why It's Important
Enphase's acquisition will contribute an incremental $60 to $70 million in annualized revenue in the back half of 2019 at a 33-35 percent gross margin, the company said.
"The IQ 7XS 320W AC microinverter in an ACM 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, providing exceptional value to homeowners, dealers and architects," Enphase Energy CEO Badri Kothandaraman said in a statement.
What's Next
The transaction is expected to close by the end of the third quarter of 2018.
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