A-Power Energy Generation Systems Acquires EVATECH Co.

A-Power Energy Generation Systems Ltd., a provider of distributed power generation systems, has signed a memorandum of understanding to acquire 100% of EVATECH Co. Ltd. of Kyoto, Japan, a 22-year-old designer and manufacturer of industrial equipment for liquid crystal displays and plasma display panels.

''EVATECH has more than 20 years of experience in developing thin-film products, and since 2006, it has begun producing production lines for thin-film PV batteries, with dedicated R&D centers in Japan,’ notes Jinxiang Lu, A-Power's chairman and CEO.

EVATECH's PV technologies include atmospheric-pressure chemical vapor deposition manufacturing techniques and transparent conducting oxide glass, which could reduce thin-film battery production costs and improve its photoelectric conversion rate, Lu adds.

The all-cash transaction is initially valued at $50 million and is expected to be primarily funded through a combination of government subsidies and loans. Government subsidies are expected to amount to 40% to 45% of the total purchase price, and auditors in Japan are currently preparing a fairness opinion for the transaction.

A-Power expects to sign a definitive purchase agreement with EVATECH by September and close the transaction by the end of November.

SOURCE: A-Power Energy Generation Systems Ltd.

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