ROCHESTER HILLS – Energy Conversion Devices, which makes thin-film flexible solar laminate products for the building integrated and commercial rooftop markets, has signed a definitive agreement to buy Solar Integrated Technologies, a provider of building integrated photovoltaic roofing systems, for $16.3 million.
Under the terms of the agreement, ECD will pay 11 cents for each share of SIT or approximately $11.2 million. Including the assumption of SIT’s net debt
obligations, the purchase price will be approximately $16.3 million. ECD
plans to finance the acquisition from existing corporate funds.
“The acquisition of SIT enhances our BIPV value proposition by significantly
improving our field engineering and technical capabilities in rooftop solar
to better support our channel partners in Europe and the U.S.,? said Mark Morelli, ECD’s president and chief executive officer. ?Our combined
organization will also be well positioned to meaningfully participate in
the expected growth in the U.S. market, including under the stimulus plan.
We are extremely pleased to welcome SIT’s talented organization to our
team.”
The transaction is subject to customary closing conditions, including
the approval of SIT’s shareholders. SIT’s board of directors has
unanimously recommended that shareholders vote in favor of the agreement.
All of SIT’s directors who hold common shares, representing a total of
11.5 percent of SIT’s outstanding shares, have entered into agreements to vote
their shares in favor of the merger agreement. SIT expects to issue a proxy
circular within the next 10 days and hold a shareholders’ meeting to
consider the transaction on August 19, or as soon as practicable
thereafter. The transaction is expected to close within 60 days.
“We are excited to join forces with the world’s leader in building
integrated and commercial rooftop photovoltaics,” said R. Randall
MacEwen, president and chief executive officer of SIT. “As one of ECD’s
largest customers, we have experienced first-hand the differentiated
attributes of UNI-SOLAR((R)) PV laminates, and their impressive power
production performance in real world conditions. We see compelling
synergies between SIT’s customer relationships, end market knowledge and
system integration expertise and ECD’s focus on operational excellence.”
On the Effective Date, the common shares of SIT will be cancelled and
automatically be converted into a non-tradable right to receive the Merger
Consideration. SIT hereby gives notice for the purposes of AIM Rule 41 that
the listing of the Common Shares of SIT on AIM will be cancelled at 07:00
a.m. (London time) on August 2. SIT shareholders should note that a separate resolution to approve the Cancellation will not be put to shareholders at the shareholders’ meeting on August 19, and that trading in SIT’s shares will cease after the Effective Date.
Credit Suisse is acting as financial advisor and Covington & Burling
LLP is acting as legal advisor to ECD. Thomas Weisel Partners LLC is acting
as financial advisor to SIT and has provided a fairness opinion to SIT’s
board of directors. Greentech Capital Advisors is also acting as financial
advisor and Jones Day is acting as legal advisor to SIT.
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