Leading power and automation technology group, ABB is acquiring Power-One, Inc., a leading provider of renewable energy and energy-efficient power conversion and power management solutions.
This acquisition would position ABB as a leading global supplier of solar inverters to a market, which is expected to grow by more than 10% per year until 2021, according to the International Energy Agency. This rapid growth is being driven by rising energy demand, especially in emerging markets, rising electricity prices and declining costs.
ABB’s CEO, Joe Hogan explains that solar PV is becoming a major force reshaping the future energy mix because it is rapidly closing in on grid parity.
According to Mr Hogan, Power-One is a well-managed company and highly regarded as a technology innovator focusing on the attractive and intelligent solar PV product. The combination of the two companies is aligned with ABB’s 2015 strategy and would create a global player with the scale to compete successfully and generate value for customers, employees and shareholders.
Power-One has one of the market’s most comprehensive offerings of solar inverters, ranging from residential to utility applications, and a broad global manufacturing footprint. It also has a power solutions portfolio that is adjacent to ABB’s power conversion business. Power-One employs almost 3,300 people, mainly in China, Italy, the US and Slovakia.
Richard J. Thompson, CEO of Power-One observes that the transaction delivers significant value to their shareholders and will enable Power-One to accelerate its growth, with the two companies coming together to better address the growing worldwide demand for innovative, renewable energy solutions.
ABB’s leading portfolio of power and automation products, global footprint and service organisation make it a natural player in the solar PV segment. For many years ABB has brought its solutions to the solar PV industry and is on track to generate sales of more than $100 million in solar inverters in 2013. Solar inverters are one of the fastest-developing technologies in power electronics, requiring substantial R&D resources. In 2012, ABB invested about $1.5 billion in R&D overall.
Ulrich Spiesshofer, head of ABB’s Discrete Automation and Motion division, into which Power-One will be integrated comments that the combination of the two successful companies will create significant value-driven growth based on innovation, global reach, high quality and technology leadership, with the acquisition supporting the implementation of the division’s strategy for renewable energy and the goal to build on their strength in power electronics.
ABB Australia represents the ABB Group in Australia.