Israel-based smart energy and inverter company SolarEdge announced on Thursday its intention to acquire battery manufacturer Kokam in a deal expected to be worth approximately $88 million.
SolarEdge announced that it would acquire approximately 75% of outstanding equity shares in Kokam for approximately $88 million, and would seek to acquire the remainder of the shares in the near future. SolarEdge expects the deal to be approved and closed in the coming weeks, and will look to purchase the remaining outstanding equity shares currently listed on the Korean over-the-counter exchange through open market purchases and otherwise, resulting in Kokam becoming a wholly-owned subsidiary of SolarEdge.
“The acquisition of Kokam will enable us to grow our offering, adding already proven battery storage to our product portfolio,” said Guy Sella, CEO, Chairman and Founder of SolarEdge. “Our technological innovation combined with Kokam’s world-class team and renowned battery storage solutions, will enable seamless integration with our current solutions, taking us a further step toward making solar installations smarter and more beneficial.”
Headquartered in South Korea and founded in 1989, Kokam manufactures Lithium-ion battery cells, batteries, and energy storage solutions and provides battery solutions for a wide variety of industries including energy storage systems, uninterruptible power supply systems, electric vehicles, aerospace, marine, and more.
Kokam currently boasts over 700 megawatt-hours (MWh) worth of energy storage deployments and over 60 battery-related patents.
“Residential solar and storage systems are becoming cheaper and therefore more popular, and this acquisition aims to bring a better product to this market,” explained Jane Swarbreck, a solar analyst at Bloomberg New Energy Finance. “Inverters are the link between solar and storage and so by acquiring battery manufacturer Kokam, SolarEdge is diversifying to offer their customers a more integrated and seamless solution for small-scale solar and storage projects.
“Integrated products, such as those offered by Tesla, are favored by customers looking for a one-stop shop for their home energy system. There is a central system that manages their solar and storage with a single software interface and point of contact with the manufacturer. For the customer, this probably means simpler installation and a more reliable warranty.”