ABB bets on solar power with $1 billion takeover

Swiss industrial group ABB (ABBN.VX) is to buy U.S. solar energy company Power-One Inc (PWER.O) for about $1 billion, betting that growth in emerging markets will revive a sector ravaged by overcapacity and weakening demand in recession-hit Europe.

The world's biggest supplier of industrial motors and power grids said on Monday it had agreed to pay $6.35 per share in cash for Power-One, the second-largest maker of solar inverters that allow solar power to be fed into grids.

The offer price is 57 percent above Power-One's closing price on Friday, boosted by $266 million in net cash held by debt-free Power-One. Stripping out its cash pile, Power-One's enterprise value stands at $762 million, valuing the bid at a more modest 6.4 times 2012 core earnings.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Lufft WS510-UMB Smart Weather Sensor

Lufft WS510-UMB Smart Weather Sensor

First and only Smart Weather Sensor with integrated Kipp & Zonen CMP10 Pyranometer (secondary standard). From the WS product family of professional intelligent measurement transducers with digital interface for environmental applications. Integrated design with ventilated radiation protection for measuring: Air temperature, relative humidity, air pressure, wind direction, wind speed and radiation. One external temperature or rain sensor is connectable.