Canadian Solar Inc. has entered into a definitive agreement with Sharp Corp. to acquire Recurrent Energy LLC for approximately $265 million in cash.
Once completed, the acquisition of Recurrent will increase Canadian Solar's total solar project pipeline by approximately 4.0 GW-8.5 GW and will increase its late-stage project pipeline by approximately 1.0 GW-2.4 GW.
Canadian Solar says Recurrent's late-stage pipeline in California and Texas is approximately 1.0 GW. These projects represent utility-scale project portfolios scheduled to be built prior to the expiration of the investment tax credit at the end of 2016.
In addition to broadening its project development and financing capabilities, Canadian Solar says the acquisition enhances its position for creating its own yieldco subsidiary in the near future.
The transaction is expected to close prior to the end of the first quarter, subject to customary closing conditions and regulatory approvals.
‘By combining Canadian Solar's global reach and experience with Recurrent's proven solar energy development track record in the U.S. and Canada, we are significantly expanding the scale of our solar energy development platform,’ says Shawn Qu, Canadian Solar chairman and CEO. ‘At the same time, this transaction broadens our strategic options to extend our business model from development and construction into potential ownership and operation of solar power plants as we work to create additional value for our shareholders.’