The acquisition will see 20 MW, or 33 systems added to SPIs portfolio, from existing contracts in the Italian photovoltaic rooftop market under the Century program, and 25 MW, or 30 to 40 systems from the Epicuro Fund. The two founders of SGT will also stay on, as part of the agreement.
The 5 million purchase price will comprise around 13,400,533 shares of SPI common stock, said to be valued at approximately $0.45 per share, plus around $250,000 of cash to SGTs founders. SGT was set up in 2008, and in 2009, China's LDK acquired a 70 percent interest in the company.
In a statement released by SPI, the company said, "SPI believes this acquisition will be financially accretive as SGTs current book of business and pipeline of projects are currently expected to generate immediate revenue and earnings for SPI both near term and on an ongoing basis."
Stephen Kircher, SPI CEO, added, "The SGT acquisition is a perfect complement to our global growth strategy. In addition to providing a base for our business development and EPC activities as we expand our European efforts, SGTs revenue and profitability goals align seamlessly with SPIs. More importantly, this acquisition will enable SPI to accelerate our ramp toward our three-year goal of potentially developing approximately 500 megawatts in solar projects per year."
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