Enphase Energy Inc. has closed its purchase of SunPower Corp.'s microinverter business for $25 million in cash and 7.5 million shares of its common stock.
"We are excited to close the acquisition of SunPower's microinverter business ahead of plan," Enphase Energy President and CEO Badri Kothandaraman said in an Aug. 9 statement. The deal was originally anticipated to close at the end of the third quarter.
The acquisition would make Enphase the exclusive microinverter supplier for SunPower's residential business in the U.S., and add $60 million to $70 million to Enphase's annual revenue in the second half of 2019, at 33% to 35% gross margin.
"We now expect volume shipments of IQ 7XS microinverters in the fourth quarter of 2018 and an acceleration of the ramp throughout 2019. The business is on track to achieve its full revenue and gross margin potential," Kothandaraman said.
During the company's latest earnings call, Kothandaraman said Enphase plans to expand the microinverter business in residential markets across Europe, Australia and Japan and will be working closely with SunPower to determine how to adopt the AC modules in specified markets.