Canadian Solar To Acquire Recurrent Energy From Sharp Corp. For About $265 Mln

(RTTNews) - Canadian Solar Inc. (CSIQ) announced that it has entered into a definitive agreement with Sharp Corporation to acquire Recurrent Energy, LLC, a leading North American solar energy developer, for about $265 million in cash.

The company said once the Recurrent acquisition is completed, it 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 approximately 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, and 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 leading solar energy developer, with a globally diversified project pipeline in low risk geographies. In addition, this transaction broadens Canadian Solar's project development and financing capabilities, and enhances the Company's position for creating its own Yield-Co in the quarters ahead.

The company expects the transaction to close prior to the end of the first quarter of 2015.