SMA Solar takes over Danfoss solar inverter business
SMA Solar Technology, which is the world’s largest maker of solar inverters, and Danfoss A/S are planning to take full advantage of economies of scale and joint development initiatives. The deal also sees Danfoss acquiring 20% of SMA’s outstanding shares for 302 million euros.
“The strategic alliance with Danfoss strengthens SMA’s leading position in the global photovoltaic market. We are faced with a highly competitive market environment and increased price pressure. In this context, SMA will benefit from Danfoss’ years of experience in automated drives. This market has been characterized by fierce competition for a long time. Accordingly, the strategy of the Danfoss group targets continuous cost improvements through global sourcing and cost down initiatives. By establishing a close cooperation there is significant potential to improve the cost position in both companies,” explained SMA CEO, Pierre-Pascal Urbon.
With the acquisition of Danfoss’ solar inverter business, SMA will increase the attractiveness of its product portfolio. After the completion of the transaction SMA plan to launch new products for the fast growing market segments of medium-sized photovoltaic plants in Europe, China and the USA.
“With the strong cooperation between Danfoss, as a leading specialist in the field of drives, and SMA, with a unique positioning in the solar inverter market, both companies will create one of the world’s largest converter alliances with a global presence. A shareholding of 20% in SMA is a bold statement and proves our continued dedication and confidence in the solar business. We are committed to drive innovation and competitiveness by integrating Danfoss know how from the drives technology to the photovoltaic inverter business. Danfoss will certainly benefit from economies of scale and the high growth rates of the solar industry,” commented Niels B. Christiansen, President and CEO of Danfoss.
in 2013 SMA and Danfoss combined represented a 25% share of the global solar inverter market. The companies combined hold more than 35% share of the European market.
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