Smart electrification is the replacement of other forms of energy such as solar energy by using electrical energy. It also means making use of the energy advantages offered by electricity overall. Increasing energy prices and sustainable needs encourage facilities managers to improve the energy efficiency of their organization. In addition, the budget and many other conflicting requirements often force them to do so. However, recent progress in IoT and energy management (EMS) technologies allows professional facility managers to gain more insight into building energy consumption. Organizations in this field are numerous, but SolarEdge is a global leader among them.
SolarEdge creates smart energy solutions that enhance our lives and drive future progress by leveraging world-class technology capabilities with a persistent focus on innovation. The optimized inverter SolarEdge DC aims at maximizing power generation while reducing PV system energy costs. The company continues to push smart energy through its PV, storage, electricity charging, batteries, UPS, and grid services solutions to a broad range of energy markets. The company is continuously involved in new technology adoptions and collaboration with other companies. They have recently announced their acquisition of SMRE, a company that provides innovative integrated powertrain technology and electronics for electric vehicles, headquartered in Italy.
SMRE has three units: e-mobility, automatic production machines, and telecom software, which was founded in 1999 and traded on Italian AIM (SMR.MI). The company has over fifteen years in the field of electric and hybrid electric motor vehicles for motorcycles, commercial vehicles, and trucks. Those solutions include innovative, high-performance motor powertrains, motor drive, gearbox, battery, BMS, chargers, VCU, and electric vehicle software.
The initial purchase consists of a purchase of about 51 percent of SMRE’s outstanding shares, under a standard share agreement, from the founder and the additional two shareholders, for a total investment of around $77 million, 50 percent in cash and 50 percent in common stock shares of SolarEdge. The Transaction is followed by a compulsory offer for the purchase of the remaining ordinary SMRE shares currently on the AIM Bourses in Italy for SMRE to be a wholly owned subsidiary of SMRE in a full transaction subject to regulatory reviews and approvals.
This subsequent merger will decrease SolarEdge’s cash balance by around $39 million, reflected in the first quarter of the cash flow, with the issuance of around 1.1 million common stock shares in SolarEdge. From the financial perspectives, the SMRE contribution in the first quarter is projected to be minimal, and as a consequence of the additional shares issued and the results of SMRE operations, the effects on non-GAAP EPS are predicted to be [$0.01]-[$0.03].