Top solar project developer Recurrent Energy announced today it will be acquired by Sharp for $305 million cash.
The deal is expected to close at the end of this year. Recurrent will operate under its own name as a subsidiary of Sharp, and CEO Arno Harris will retain his title. The company won’t be required to use Sharp products, nor will there be any preferential pricing, Harris said.
The deal was necessitated by Recurrent’s growth and need for more capital. There were also other companies in the running for the acquisition, but Harris declined to name them.
“We’re thrilled. It’s a brand new day for the company and for everybody here,” Harris said in a press call today. “Sharp’s support will really help us accelerate our growth.”
San Francisco-based Recurrent Energy is a leading solar developer, with 2 gigawatts’ worth of distributed-scale solar projects in its pipeline. It is working on a major solar project for Ontario (170 megawatts over 20 ground-mount solar projects) and for Kaiser Permanente (15 megawatts over 16 solar systems installed above parking garages and on rooftops). Earlier this year, it landed a long-term power purchase contract for 50 megawatts with SoCal Edison.
Sharp is already a top manufacturer of solar cells — in June, the company celebrated making its two millionth panel at its factory in Memphis — and the move to acquire Recurrent signals its intent to grow its solar business.
“With Recurrent Energy’s know-how as a developer, Sharp aims to become a total solutions company in the photovoltaic field, extending from developing and producing solar cells and modules to developing and marketing power generation plants,” said Sharp executive Toshishige Hamano in a statement.
Recurrent Energy’s backers include Hudson Clean Energy Partners and Mohr Davidow Ventures.