Enphase Energy Inc. and SunPower Corp. have announced a definitive agreement for Enphase to acquire SunPower’s micro-inverter business for $25 million in cash and 7.5 million shares of Enphase common stock.
According to the California-based companies, the deal enhances SunPower’s Equinox home solar system with a custom line of Enphase’s IQ micro-inverters for use with SunPower AC modules (ACMs). The agreement also adds more than 140 patents to Enphase’s IP portfolio, the companies note.
Enphase expects to add $60 million-$70 million annualized revenue in the second half of 2019 at a 33%-35% gross margin. The $25 million in cash will be funded from Enphase’s balance sheet in two installments.
“We are pleased to become the micro-inverter supplier for SunPower’s AC modules,” says Badri Kothandaraman, president and CEO of Enphase Energy. “The IQ 7XS 320W AC micro-inverter in an ACM strongly complements SunPower’s high efficiency solar cells, communication and racking to create a high-performance, high-quality and easy-to-use Equinox home solar system, providing exceptional value to homeowners, dealers and architects.”
IQ 7 is Enphase’s seventh-generation micro-inverter platform. The IQ 7XS micro-inverter offers 97.5% CEC efficiency and was designed specifically for the SunPower’s X Series 96-cell PV modules, which have a peak AC output power of 320 W and a maximum power point tracking range of 53 V to 64 V.
“As a result of this strategic partnership, SunPower looks forward to benefiting from Enphase’s expertise, allowing us to continue containing costs, leveraging R&D support and helping streamline our business priorities,” notes Tom Werner, CEO of SunPower.
In addition, the companies will enter into a five-year master supply agreement under which SunPower will “exclusively procure module-level power electronics and related equipment for use in the U.S. residential market from Enphase.”
The transaction is expected to close at the end of the third quarter, subject to product qualification and other closing conditions under the definitive asset purchase agreement. Initial IQ shipments are expected in the fourth quarter.