The Israeli solar energy company will pay $77 million for a 51% stake in SMRE and make an offer to purchase the remaining shares.
Israeli smart energy company SolarEdge (Nasdaq: SEDG) announced today that it has signed an agreement to acquire Italian electric vehicle power company SMRE spa.
The initial acquisition entails a purchase from the founder and an additional two stockholders of 51% of the outstanding shares of SMRE for $77 million, with 50% in cash and the remaining 50% to be paid in shares of SolarEdge stock. SolarEdge will make an offer to purchase the outstanding shares of SMRE, that are listed on the Italian AIM stock exchange.
Founded in 1999 and traded on the Italian AIM (SMR.MI), SMRE has three business units: e-mobility, automated production machines and telematics software. The company has more than fifteen years of experience developing end-to-end e-mobility solutions for electric and hybrid vehicles used in motorcycles, commercial vehicles and trucks. These solutions include innovative high-performing powertrains with e-motor, motor drive, gearbox, battery, BMS, chargers, Vehicle Control Unit (VCU) and software for electric
SolarEdge founder chairman and CEO Guy Sella said, "The acquisition of SMRE 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. SMRE's innovative technology and experienced, successful team provides SolarEdge with fast-track access to the high-growth e-mobility market. We believe that combining SMRE's vast experience and full powertrain technology with SolarEdge's innovative power and battery technology, proven operational excellence and global reach, positions us to become a market leader in this important market."
"SMRE built a strong team that has developed products addressing the current and future needs of the e-mobility market," stated Samuele Mazzini, CEO, Chairman and Founder of SMRE. "SMRE's expertise together with SolarEdge's successful business track record, R&D capabilities and innovative power electronics will favorably position us in the global transition to e-mobility."
This initial acquisition is expected to reduce SolarEdge's cash balance by $39 million.