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.
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