© Business | February 26, 2014

SMA Solar partners up with Danfoss

SMA Solar Technology AG and Danfoss A/S is entering into a strategic partnership where Danfoss will acquire 20% of shares in SMA.
The two companiess will take full advantage of economies of scale and joint development initiatives. In addition, Danfoss acquires 20% of SMA’s outstanding shares and plans to sell its complete solar inverter business to SMA.

“The strategic alliance with Danfoss strengthens SMA’s leading position in the global photovoltaic market. We are faced with a highly competitive market environment and increased price pressure. In this context, SMA will benefit from Danfoss’ years of experience in automated drives. This market has been characterized by fierce competition for a long time. Accordingly, the strategy of the Danfoss group targets continuous cost improvements through global sourcing and cost down initiatives. By establishing a close cooperation there is significant potential to improve the cost position in both companies,” says SMA CEO Pierre-Pascal Urbon.

After the completion of the transaction SMA will launch new products for the fast growing market segments of medium-sized photovoltaic plants in Europe, China and the USA.

“With the strong cooperation between Danfoss, as a leading specialist in the field of drives, and SMA, with a unique positioning in the solar inverter market, both companies will create one of the world’s largest converter alliances with a global presence. A shareholding of 20% in SMA is a bold statement and proves our continued dedication and confidence in the solar business. We are committed to drive innovation and competitiveness by integrating Danfoss know how from the drives technology to the photovoltaic inverter business. Danfoss will certainly benefit from economies of scale and the high growth rates of the solar industry,” explains Niels B. Christiansen, President and CEO of Danfoss.

Danfoss 20% acquisition (6.94 million of SMA shares at a price of EUR 43.57 per share) amounts to EUR 302,38 million. Danfoss will not buy or sell shares for a lock-up period of at least 2 years.
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