Acquisition Moves SolarEdge into EV Space

January 14, 2019 by Scott McMahan

California-based SolarEdge Technologies, Inc. announced the signing of a final contract to acquire SMRE Spa ("SMRE"). The Italian company SMRE offers electronic components for electric vehicles, and integrated technologies for powertrains. Founded in 1999 and listed on the AIM ITALIA stock exchange, SMRE has three business units: electromobility, automated production machinery and telematic software.

The company reportedly has over fifteen years of experience in developing end-to-end electromobility solutions for electric and hybrid vehicles used in commercial vehicles, trucks, and motorcycles. These solutions include novel high-performance powertrains with an electric motor, engine control unit, as well as a gearbox. In addition, the solutions include battery, battery management systems, chargers, vehicle control units (VCUs), and software for electric vehicles.

IET SpA is a company of the SMRE Group which has the experience and know-how to produce and design integrated powertrains, vehicle control units, dc-dc converters, battery packs, battery management systems, as well as software and accessories for electric vehicles. Systematica SpA, another company of the SMRE group develops integrated software solutions. SMRE Engineering designs automated industrial and manufacturing equipment.

SolarEdge cites the transport electrification aim pursued by numerous governments and car manufacturers, and points to experts in the field that predict a growth of the global electric vehicle market from one million electric vehicles in 2018 to about 20 million electric vehicles per year in 2030, with an average annual growth rate of 30.6% between 2015 to 2030.

"The acquisition of SMRE is a further step towards the realization of our sustainable growth strategy through the access to another fast-growing and technologically synergetic market and the diversification of our activities by entering new segments outside of solar energy, "said Guy Sella, CEO, Chairman of the Board of Directors and founder of SolarEdge." The innovative technologies developed by SMRE and its experienced and highly skilled staff endow SolarEdge with preferential access to the high-end market. electromobility growth We believe that the combination of extensive experience and technologies forThe entire SMRE powertrain and the innovative power and battery technologies, proven operational excellence and global reach of SolarEdge will enable us to establish ourselves as the industry leader in this important market. "

"SMRE has developed a robust team that has developed products that meet the current and future needs of the electromobility market," said Samuele Mazzini, Chief Executive Officer, Chairman of the Board of Directors and founder of SMRE. "SMRE's expertise combined with commercial successes, research and development capabilities and innovative power electronics solutions from SolarEdge will facilitate our transition to the global electromobility industry."

The initial acquisition involves the purchase from the founder and two other shareholders of about 51 percent of its outstanding shares of SMRE pursuant to a standard share purchase contract, with a total investment of about $77 million of dollars, in which 50% will be paid in cash. The remaining 50% will be paid in SolarEdge shares. The transaction is expected to be finalized over the next several weeks and will be followed by a mandatory tender offer in which SolarEdge intends to offer to buy, as part of an all-cash transaction.

Further information about the acquisition will be publicized during the teleconference for about fourth-quarter earnings for 2018.