Canadian Solar Agrees To Buy Recurrent Energy From Sharp For $265 Mln

(RTTNews) - Canadian Solar Inc. (CSIQ) Tuesday said it has entered into a definitive agreement with Sharp Corp. (SHCAY.PK) to acquire Recurrent Energy, LLC, a North American solar energy developer, for about $265 million. The transaction is expected to close prior to the end of the first quarter of 2015.

Once completed, the acquisition will increase Canadian Solar's total solar project pipeline by approximately 4.0 GW to 8.5 GW, and its late-stage project pipeline by around 1.0 GW to 2.4 GW.

Located in California and Texas, Recurrent's 1.0 GW late-stage pipeline is one of the largest utility-scale project portfolios scheduled to be built prior to the ITC expiration in 2016. It represents an estimated revenue opportunity of at least $2.3 billion for Canadian Solar under a build and sell business model.

The transaction further expands Canadian Solar's position as a solar energy developer, with a globally diversified project pipeline in low risk geographies.

Additionally, the deal broadens Canadian Solar's project development and financing capabilities, and enhances its position for creating its own Yield-Co in the quarters ahead.