SMA Solar Technology AG has agreed to acquire the solar inverter business of Danfoss A/S. As part of the agreement, Danfoss will take a 20% stake of SMA's outstanding shares.
Under the terms of the deal, Danfoss will acquire 6.94 million of SMA shares at a price of EUR 43.57 per share in cash from SMA's founders, their trusts and families. The transaction volume amounts to EUR 302.38 million.
The SMA founders, their trusts and families will hold 54.95% of the SMA shares after the transaction is completed. Danfoss agrees not to buy or sell shares for at least two years. The deal, subject to regulatory approval, is expected to close in the third quarter of this year.
SMA says that upon completion of the transaction, it will launch new products for the for medium-size photovoltaic plants in Europe, China and the U.S.
‘We are faced with a highly competitive market environment and increased price pressure,’ says SMA CEO Pierre-Pascal Urbon." In this context, SMA will benefit from Danfoss' years of experience in automated drives … By establishing a close cooperation, there is significant potential to improve the cost position in both companies.’