Solar inverter manufacturer SolarEdge has made a major play for the burgeoning e-mobility market, acquiring Italian integrated EV firm SMRE.
SolarEdge, which is among the world’s largest manufacturers of inverters used with solar PV and battery storage, announced the acquisition this morning in a deal which values SMRE at around US$150 million (£117 million).
SolarEdge has dipped its toe into the EV charging market already, bringing to market an EV charging inverter that allows homeowners to charge their electric vehicle directly using power generated from domestic solar installs.
However this acquisition is expected to accelerate the firm’s move into the market and Guy Sella, chief executive, chairman and founder of SolarEdge, said the acquisition was another step in executing the firm’s strategy by addressing markets outside of its core solar offering.
“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,” he said.
SMRE has three main business units focusing on e-mobility, automated production machines and telematics software. It develops end-to-end e-mobility solutions for electric vehicles, producing powertrains, gearboxes, batteries and chargers for electric vehicles, as well as software for both battery and EV management.
The deal will see SolarEdge purchase a majority 51% stake in SMRE from the firms founder and two additional shareholders for an aggregate investment of around US$77 million (£60.3 million). That fee is to be paid 50% in cash and the remaining 50% in shares of SolarEdge common stock.
The transaction is to close in the coming weeks, and SolarEdge will follow the purchase up with a mandatory tender offer for the remaining 49% of SMRE stock, which SolarEdge intends to acquire in an all cash transaction.
As a result, SMRE is to become a wholly-owned subsidiary of SolarEdge.
It’s the second major acquisition SolarEdge has made in recent months as it looks to diversify away from the inverter market. In October last year SolarEdge announced the purchase of South Korean battery manufacturer Kokam as it set its sights on becoming a “one-stop-shop” for its customers.