Enphase Energy Inc. signed a definitive agreement to acquire SunPower Corp.'s microinverter business for $25 million in cash and 7.5 million Enphase common shares.
The $25 million cash component will be funded in two installments from Enphase's balance sheet, according to a June 12 company release.
"As a result of this strategic partnership, SunPower looks forward to benefitting from Enphase's expertise, allowing us to continue containing costs, leveraging R&D support and helping streamline our business priorities," SunPower CEO Tom Werner said.
The transaction is expected to add $60 million to $70 million to Enphase's annualized revenue in the second half of 2019 at 33% to 35% gross margin, according to the news release. Subject to certain closing conditions, the deal is slated to close at the end of the third quarter.
