Power electronics manufacturer SolarEdge made an announcement that is has closed an asset purchase agreement with Gamatronic Electronics Ltd. The companies announced the start of the procedure of the deal earlier this year, in May.
According to SolarEdge, the acquisition was signed at $11.5 million which provides the company with “substantially all of Gamatronic’s assets.” The acquisition includes Gamatronic’s intellectual property and brand.
The power electronics company also stated that it would retain a two year earn provision for 50% and 33% of the net income of Gamatronic’s in each year following the closing respectively. Approximately, 100 staff members of Gamatronic will commence working for SoalrEdge as of July 1, the announcement specifies.
Gamatronic develops, manufactures and sells uninterruptible power supply (UPS) products. Its electricity demand devices include a range of network monitoring and control systems, capable of supplying emergency power outputs of different capacities. The applications are deployed in essential service providers such as hospitals.
A growing number of power electronics companies are looking at diversifying their traditional offerings by providing, for example, energy management systems, VPPs, EV-chargers and predictive maintenance solutions. SolarEdge is leading the charge in this direction and now seeks to intensify its efforts and capitalize on the possibilities of providing UPS solutions and other appliances benefitting from Gamatronic’s knowledge base and experience.
“This acquisition is our first step in expanding our business to new fields outside the solar arena,” said Guy Sella, CEO and Chairman of SolarEdge in a statement. “The multi-billion-dollar UPS market is expected to undergo significant changes in the coming years, and we believe that combining SolarEdge’s innovation, operational excellence and business leadership with Gamatronic’s technology and extensive experience in this field will allow us to become a UPS market leader.”