Marathon Capital, LLC (“Marathon”) acted as the exclusive financial advisor to SunPower Corporation (“SunPower”) on the company’s recently announced definitive agreement to sell its microinverter business to Enphase Energy, Inc. (“Enphase”). Enphase will acquire SunPower’s microinverter business for $25 million in cash and 7.5 million shares of Enphase common stock.
The transaction brings together market share leaders in residential solar microinverters and U.S. residential solar panel installations to accelerate the global adoption of AC modules as the de facto residential solar solution. The SunPower® Equinox home solar system will be enhanced by a custom line of the Enphase IQ microinverters for use with SunPower AC modules, delivering the high quality and performance SunPower’s customers have come to expect, while enabling SunPower to benefit from Enphase’s scale, technical expertise and R&D support. The transaction adds over 140 patents to Enphase’s IP portfolio and is expected to generate strong revenue growth for Enphase through their exclusive co-development of microinverters for SunPower’s industry leading Equinox home solar system in the U.S. market.
Marathon worked closely with SunPower to run a bespoke marketing process, identifying Enphase’s interest, helping structure the term sheet, and negotiating key commercial deal points for the sale of the microinverter business and master supply agreement, all while providing market insight to facilitate the strategic partnership between SunPower and Enphase.
“It was a pleasure to work with SunPower on this transformative transaction,” said David Kirkpatrick, Director at Marathon Capital. “SunPower’s high efficiency solar technology, differentiated residential solar AC module-based solution and strong market position in the U.S. residential solar market, paired with Enphase’s best-in-class microinverter will be a formidable combination.”
The transaction is expected to close at the end of the third quarter of 2018 subject to product qualification and customary closing conditions.