Dive Summary:
- Grid technology-maker ABB has announced the acquisition of Power-One, one of the leading manufacturers of solar inverters, for $1 billion.
- Solar converters turn the direct current output of solar panels into utility frequency alternating current.
- ABB CEO Joe Hogan emphasized he was betting on solar to boom: “If you wait in this industry until it’s very clear what it’s going to look like, you are not going to be paying the multiples that we are paying here today.”
From the article:
"... ABB is spending $6.35 a share for Power-One. Power-One has 3,300 employees, and in 2012 produced $120 million in earnings, with $1 billion in sales. Bloomberg reports that the deal is 7.7 times Power-One’s earnings (EBITDA), which is lower than the average price of 8.5 times earnings that has been paid over the past three years for clean power companies.
There was a record-breaking 3.3 gigawatts worth of solar panels — or 16 million individual solar panels — installed in the U.S. in 2012, making solar power the fastest-growing energy source domestically. Another record year is expected in 2013. ..."