SolarEdge Technologies Inc. will acquire Italian electric vehicle company S.M.R.E. SpA for roughly $77 million, the companies announced Jan. 7.
The initial transaction includes approximately 51% of the outstanding shares of SMRE, on which SolarEdge expects to close in coming weeks. The company also intends to purchase all remaining ordinary shares of SMRE listed on Italy's AIM stock exchange.
The move is "another step in executing our strategy of sustainable growth by addressing an additional fast growing and technologically synergetic market while diversifying into new fields outside the solar arena," SolarEdge CEO Guy Sella said in a news release.
SMRE specializes in electric vehicle technologies for motorcycles, commercial vehicles and trucks, including powertrains and software.
An Israel-based global supplier of solar power inverters, SolarEdge is making a major push into other areas, including battery technology and transportation electrification. In October 2018, SolarEdge purchased South Korean lithium-ion battery company Kokam Co. Ltd. for $88 million and has signaled its intent to quadruple production capacity.
SolarEdge expects the initial 51% purchase of SMRE to reduce its cash balance by roughly $39 million and plans to issue approximately 1.1 million shares of common stock. SolarEdge will discuss further details of the planned acquisition on its next earnings conference call, the company said.