ABB to Acquire Power-One for $1 Billion

The boards of Switzerland-based ABB (NYSE: ABB  ) and U.S.-based Power-One (UNKNOWN: PWER.DL.DL  ) have come to terms on an agreement in which ABB will pay $6.35 per outstanding share of Power-One stock to acquire the company, valuing the deal at approximately $1 billion, the companies announced today.

ABB plans to utilize Power-One's position in the rapidly growing solar inverter market, which the companies deem the "intelligence" behind solar photovoltaic (PV) systems. In 2012, Power-One generated earnings of about $120 million, on approximately $1 billion in revenues. Power-One currently employs nearly 3,300 people, primarily located in China, Slovakia, Italy, and the U.S., and it will be integrated into ABB's existing Discrete Automation and Motion unit. ABB operates in more than 100 countries, employing a total of 145,000 globally, including nearly 20,000 in the U.S.

"The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders," ABB CEO Joe Hogan said.

The agreement between ABB and Power-One is structured as a merger, and is subject to shareholder approval and standard closing conditions. ABB will finance the deal using existing funds, and expects it will close by the second half of 2013.

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  • Report this Comment On April 22, 2013, at 12:25 PM, bixtu wrote:

    No debt, a market growing at least 10% a year, PE of 18. I think this is undervalued and I'm bummed out. I bought in about 5, I suppose I should be happy, but it seems to cap the upside I was hoping for.

    As far as I can tell, the only inverter focused company worth being interested in now is SMA.. not even traded here in US.

  • Report this Comment On April 22, 2013, at 5:32 PM, SkepikI wrote:

    ^ I agree, I had PWER for the long term. Now it will be buried in the giant ABB, where value seems to be slowly eroding..... Now no more upside, closed my CAPS and position, I guess I will just have to take my pitiful 25% gain and look elsewhere...sigh...

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