Ormat Technologies To Acquire U.S. Geothermal For $109.9 Million

Ormat Technologies Inc.  ORA entered in an agreement to acquire U.S. Geothermal, Inc. HTM, engaged in the development, production and sale of electricity, produced from renewable geothermal energy. Shareholders of U.S. Geothermal will receive $5.45 per share in cash.

Ormat Technologies is going to pay $109.9 million to U.S Geothermal including its option holders. The transaction is expected to close in the second quarter of 2018 subject to the approvals of regulatory authority, major shareholders and customary closing conditions.

Ormat Technologies' Gain

This definitive agreement to acquire U.S. Geothermal will enhance Ormat Technologies efficiency and capability of clean power generation. Developing projects of U.S. Geothermal, at the Geysers, California; a second phase project at San Emidio, Nevada; at Crescent Valley, Nevada; and the El Ceibillo project located near Guatemala City, Guatemala are likely to add another 115 MW of power generation capacity to the existing fleet.

U.S. Geothermal is a leading renewable energy company with geothermal power projects for net output of 45 megawatt. The company has been developing projects to increase production in the future.

Price Movement

Shares of Ormat Technologies have returned 27.6% in the last year outperforming the industry's 3.7% rally.

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