Canadian Solar Inc. today announced that it has entered into a definitive agreement with Sharp Corporation to acquire Recurrent Energy, LLC for approximately $265 million.
Once completed, the acquisition of Recurrent will increase Canadian Solar's total solar project pipeline by approximately 4.0GW to 8.5GW. Located in California and Texas, Recurrent's 1.0GW late-stage pipeline is 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 acquisition of Recurrent is an important milestone for us as it significantly expands and strengthens our position in the North American market, and places Canadian Solar firmly among the leading global solar energy companies," said Dr. Shawn Qu, Canadian Solar Chairman and Chief Executive Officer. "By combining Canadian Solar's global reach and experience with Recurrent's proven solar energy development track record in the US and Canada, we are significantly expanding the scale of our solar energy development platform. At the same time, this transaction broadens our strategic options to extend our business model from development and construction into potential ownership and operation of solar power plants as we work to create additional value for our shareholders."
"Canadian Solar is a key player in the industry and we are fortunate that our collective visions for the future of the solar market are very much aligned," said Arno Harris, Recurrent Energy Chief Executive Officer. "We look forward to close collaboration with our new parent company to bring solar power further into mainstream energy markets."