Looking to Enter UPS Market, SolarEdge to Buy Gamatronic Assets
Jerusalem-headquartered Gamatronic develops uninterruptible power supply devices that provide emergency power to appliances when the input power source fails
For daily updates, subscribe to our newsletter by clicking here.In a Thursday filing to the Tel Aviv Stock Exchange, Gamatronic stated the sum of the deal is around $11.5 million (NIS 41 million), and that it will also be entitled to 50% of the pre-tax profit of the sold assets in the first year following the deal, and to 33% in the second year.
Subject to customary closing conditions, the deal is expected to close by the end of the second quarter of 2018.
Headquartered in Herzliya, a city in central Israel, SolarEdge develops optimization, monitoring and remote-control solutions for solar panels and systems, intended to increase the efficiency of solar energy conversion. The company reported revenues of $607 million for 2017, up 24% year to year, and a GAAP net income of $84.2 million. Founded in 2006, SolarEdge has over 600 employees in Israel, North America, Asia and Europe.
Tel Aviv-listed, Jerusalem-headquartered Gamatronic develops, manufactures, and sells industrial, marine, medical grade and military UPS devices that provide emergency power to appliances when the input power source fails. Gamatronic has subsidiaries in the U.K. and China, and local offices in South Africa and Brazil.
SolarEdge has stated it will acquire all of Gamatronic’s assets, including its intellectual property, brand, and tangible assets. Following the acquisition, around 100 of Gamatronic’s employees will be rehired as SolarEdge employees.
“This acquisition is our first step in expanding our business to new fields outside the solar arena,” said SolarEdge Founder, CEO and Chairman Guy Sella in a statement.