Day4 Energy Inc. (TSX: DFE), a Canadian solar integrator, will begin selling turnkey photovoltaic manufacturing lines following the acquisition of Germany's ACI-ecotec GmbH & Co. KG (ACI).
Day4 announced it will acquire 100% of ACI in an all stock transaction of up to 10.8 million shares. ACI is a privately owned photovoltaic (PV) equipment design and
manufacturing company.
Day4 said the combination of the two company's abilities allows for the immediate launch of turn-key manufacturing technology developed by Day4 for production of PV cells and modules. ACI’s existing customer relationships provide Day4 with an established path to roll out the manufacturing technology.
With technological differentiation rapidly emerging as a critical area for most PV manufacturers, Day4’s offering of a turn-key package of manufacturing technology, proprietary equipment, process, product design and technology license is a natural evolution of the company’s business.
Day4's equipment sales are expected to significantly alter
the company’s revenue model as manufacturing line integration services
and technology royalty streams associated with the new product offering
become an increasingly large component of the company’s revenue mix over
time.
The company will provide more specific financial guidance regarding thr impacts of the transaction during its first quarter earnings
conference call on May 11, 2010. The parties anticipate closing the
transaction, which is subject to customary closing conditions, in the
first half of 2010.
“By expanding our business to offer a complete manufacturing solution we are taking the logical and critical next step in the evolution of our company towards our ultimate goals of achieving energy cost parity and expanding the presence of Day4’s innovative high performance technology in solar generation markets while making efficient use of our capital.” said Dr. John MacDonald, CEO and Chairman of Day4.
