SPI Solar (“SPI”) (SOPW:OTCBB), a solar developer, announced that it has acquired 100% of the outstanding shares of Italy-based Solar Green Technologies (“SGT”) from LDK Solar Europe Holdings S.A., a wholly owned subsidiary of LDK Solar Co., Ltd. (“LDK”), and the two founders of SGT for approximately €5 million, primarily comprised of approximately 13,400,533 shares of SPI common stock valued at approximately $0.45 per share, plus approximately $250,000 of cash to the two founders of SGT. SPI believes this acquisition will be financially accretive as SGT’s current book of business and pipeline of projects are currently expected to generate immediate revenue and earnings for SPI both near term and on an ongoing basis. SGT’s current booked pipeline consists of 20MW of rooftop solar installations for the Century program serving as EPC provider for approximately 33 distributed generation systems as well as Epicuro Fund’s 25MW project pipeline for another 30-40 systems.
“The SGT acquisition is a perfect complement to our global growth strategy,” said Stephen Kircher, CEO for SPI Solar. “In addition to providing a base for our business development and EPC activities as we expand our European efforts, SGT’s revenue and profitability goals align seamlessly with SPI’s. More importantly, this acquisition will enable SPI to accelerate our ramp toward our three-year goal of potentially developing approximately 500 megawatts in solar projects per year.”
“We are very happy to be part of the SPI Solar team,” said Angelo Prete, Managing Director of Solar Green Technology. “The combination of our companies provides SPI Solar with an even stronger European presence. From an organizational perspective, we have many complementary resources that we can leverage to extend SPI’s reach throughout Europe and beyond.”
Solar Green Technologies was founded in 2008, and LDK purchased a 70% interest in the company in 2009. From 2008 to 2011, the company installed approximately 22 megawatts, which includes one of the largest rooftop systems in Italy. In addition to its experienced senior management, SGT will bring additional personnel with localized experience in business development and construction management roles. SGT will continue operations in Italy and Europe as a wholly owned subsidiary of SPI.
SPI plans to provide an update to its business outlook following the close of the acquisition when it reports its second-quarter 2012 financial results in August 2012.