SolarEdge Enters UPS Market With the Acquisition of Gamatronic
10 May, 2018
SolarEdge will pay approximately $11.4 million. “This acquisition is our first step in expanding our business to new fields outside the solar arena”
SolarEdge Technologies announced that it will enter the field of Uninterruptible Power Supply (UPS) by signing an asset purchase agreement with Gamatronic Electronic Industries from Jerusalem. SolarEdge intends to combine its power electronics expertise with Gamatronic’s know-how to build a leading global UPS business. In a filing to the Tel Aviv stock exchange, Gamatronic reported tha SolarEdge will pay NIS 41 million (approximately $11.4 million).
Gamatronic develops, manufactures, and sells UPS electrical devices that provide emergency power to appliances when the input power source fails. The company’s products include UPS systems of a wide range of outputs and monitoring and control solutions for power systems. Gamatronic has been selling its products since 1970 and today sells its products in the United States, China, Europe, South Africa, and Latin America.
In Search for New Markets
SolarEdge provides an intelligent power optimizers, inverters, smart energy management, and a cloud-based monitoring platform to manage and optimize power generation of PV modules and large scale and utility-scale solar installations. SolarEdge from Herzliya, Israel, is a fast growing company. Its sales in Q1 2018 grew 82% to $209.9 million. The company forecasts revenues of $220 million to $230 million in the second quarter.
“This acquisition is our first step in expanding our business to new fields outside the solar arena,” stated Guy Sella, CEO and Chairman of SolarEdge. “The multi-billion dollar UPS market is expected to undergo significant changes in the coming years. Combining SolarEdge’s innovation, operational excellence and business leadership with Gamatronic’s technology and extensive experience in this field, will allow us to become a UPS market leader.”
SolarEdge is purchasing substantially all of Gamatronic’s assets, including its intellectual property. Upon closing of the agreement, approximately 120 of Gamatronic’s employees will be rehired as SolarEdge employees. The agreement is expected to close by the end of the second quarter of 2018.