Market Overview

SolarEdge to Enter E-Mobility Market with Acquisition of S.M.R.E. Spa

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SolarEdge
Technologies
, Inc. ("SolarEdge") (NASDAQ:SEDG), a global leader in
smart energy, announced today the entry into a definitive agreement to
acquire S.M.R.E
Spa
("SMRE"). Headquartered in Italy, SMRE provides innovative
integrated powertrain technology and electronics for electric vehicles.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190106005154/en/

SolarEdge Headquarters (Photo: Business Wire)

SolarEdge Headquarters (Photo: Business Wire)

Founded in 1999 and traded on the Italian AIM (SMR.MI), SMRE has three
business units: e-mobility, automated production machines and telematics
software. The company has more than fifteen years of experience
developing end-to-end e-mobility solutions for electric and hybrid
vehicles used in motorcycles, commercial vehicles and trucks. These
solutions include innovative high-performing powertrains with e-motor,
motor drive, gearbox, battery, BMS, chargers, Vehicle Control Unit (VCU)
and software for electric vehicles.

With governments and automotive manufacturers committed to the
electrification of transportation, the global market for electric
vehicles is expected by industry experts to increase from approximately
one million EVs in 2018 to approximately 20 million annually in 2030,
with a CAGR of 30.6% from 2015 and until 2030.

"The acquisition of SMRE is another step in executing our strategy of
sustainable growth by addressing an additional fast growing and
technologically synergetic market while diversifying into new fields
outside the solar arena," stated Guy Sella, CEO, Chairman and Founder of
SolarEdge. "SMRE's innovative technology and experienced, successful
team provides SolarEdge with fast-track access to the high-growth
e-mobility market. We believe that combining SMRE's vast experience and
full powertrain technology with SolarEdge's innovative power and battery
technology, proven operational excellence and global reach, positions us
to become a market leader in this important market."

"SMRE built a strong team that has developed products addressing the
current and future needs of the e-mobility market," stated Samuele
Mazzini, CEO, Chairman and Founder of SMRE. "SMRE's expertise together
with SolarEdge's successful business track record, R&D capabilities and
innovative power electronics will favorably position us in the global
transition to e-mobility."

The initial acquisition entails a purchase from the founder and an
additional two stockholders of approximately 51% of the outstanding
shares of SMRE pursuant to a standard share purchase agreement, for an
aggregate investment of approximately $77 million, with 50% to be paid
in cash and the remaining 50% to be paid in shares of SolarEdge common
stock. The transaction is expected to close in the coming weeks and will
be followed by a mandatory tender offer in which SolarEdge intends to
offer to purchase in an all cash transaction, subject to regulatory
reviews and approvals, the remaining outstanding ordinary shares of
SMRE, that are currently listed on the Italian AIM stock exchange, with
the goal of SMRE becoming a wholly-owned subsidiary of SolarEdge.

This initial acquisition is expected to reduce SolarEdge's cash balance
by approximately $39 million, which will be reflected in the first
quarter cash flow and involve the issuance of approximately 1.1 million
shares of SolarEdge common stock. From a financial perspective, the
contribution of SMRE to SolarEdge's revenues in the first quarter is
expected to be minimal and the effect on non GAAP EPS is expected to be
($0.01)-($0.03) as a result of the additional shares issuance and the
results of SMRE operations.

Further information on this acquisition will be provided in the fourth
quarter 2018 earnings release call.

About SolarEdge

SolarEdge is a global leader in smart energy technology. By leveraging
world-class engineering capabilities and with a relentless focus on
innovation, SolarEdge creates smart energy solutions that power our
lives and drive future progress. SolarEdge developed an intelligent
inverter solution that changed the way power is harvested and managed in
photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to
maximize power generation while lowering the cost of energy produced by
the PV system. Continuing to advance smart energy, SolarEdge addresses a
broad range of energy market segments through its PV, storage, EV
charging, batteries, UPS, and grid services solutions. SolarEdge is
online at solaredge.com

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