Enphase Energy, Inc. (NASDAQ:ENPH), and SunPower Corporation (NASDAQ:SPWR), announced a definitive agreement for Enphase to acquire SunPower's microinverter business for $25 million in cash and 7.5 million shares of Enphase common stock. Key highlights of the acquisition include:

• Advances AC Modules (ACM) as the future of residential solar
• Enhances SunPower's Equinox Home Solar System with a custom line of Enphase's IQ microinverters for use with SunPower AC Modules
• Enphase expects to add $60-$70 million annualized revenue in second half of 2019 at 33%-35% gross margin
• Adds over 140 patents to Enphase's strong IP portfolio
• Expects to close by end of the third quarter of 2018 with initial IQ shipments in the fourth quarter
• $25 million cash to be funded from Enphase's balance sheet in two installments

"We are pleased to become the microinverter supplier for SunPower's AC Modules," said Badri Kothandaraman, president and CEO of Enphase Energy. "The IQ 7XS 320W AC microinverter in an ACM strongly complements SunPower's high efficiency solar cells, communication and racking to create a high performance, high quality and easy-to-use Equinox Home Solar System, providing exceptional value to homeowners, dealers and architects."

IQ 7 is Enphase's seventh-generation microinverter platform leading the industry with its software-defined architecture, broad regulatory compliance, advanced "Smart Grid" features, and a high fire safety rating. The IQ 7XS microinverter offers 97.5% CEC efficiency and was designed specifically for the SunPower's X Series 96-cell PV modules with peak AC output power of 320W and a Maximum Power Point (MPP) tracking range of 53-64V.

"SunPower customers will continue to see the same quality, high performance that they see now as Enphase exclusively co-develops microinverters for our industry leading residential Equinox solar product," said SunPower CEO Tom Werner. "As a result of this strategic partnership, SunPower looks forward to benefitting from Enphase's expertise, allowing us to continue containing costs, leveraging R&D support and helping streamline our business priorities."

The transaction is expected to close at the end of the third quarter of 2018 subject to product qualification and other closing conditions under the definitive asset purchase agreement.

Enphase | www.enphase.com 

SunPower | www.sunpower.com