Don't let it get away!
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: ABB has offered $6.35 per share for Power-One for a total price tag of about $1 billion. The deal prices the company at able 10 times EBITDA, and ABB says it will be able to realize some synergies from folding Power-One into its existing businesses.
Now what: Shares of Power-One traded higher than the buyout offer at times today, indicating that investors are expecting a higher offer. There could be another offer, but I'd take some gains off the table because a bidding war isn't likely to erupt for the company. Large inverter competitors either have their own businesses to rely on or aren't going to be willing to spend more than $1 billion to buy a solar-inverter manufacturer. Still, it's a huge day for those patiently waiting for Power-One to pop.
Interested in more info on Power-One? Add it to your watchlist by clicking here.