US energy tech firm SolarEdge Technologies is to acquire a majority stake in South Korea battery manufacturer Kokam, ahead of plans to take full control of the company.
The acquisition of around 75% of outstanding equity shares of Kokam reflects an aggregate investment of approximately US$88 million, including related transaction expenses, SolarEdge said.
The deal is expected to close in the coming weeks and SolarEdge plans to buy the remaining outstanding equity shares of Kokam— with the aim of Kokam becoming a subsidiary.
SolarEdge CEO, chairman and founder Guy Sella said the acquisition “will enable us to grow our offering, adding already proven battery storage to our product portfolio”.
Sella said the deal would help make “solar installations smarter and more beneficial”.
Kokam, founded in 1989, manufactures lithium-ion cells. In 2016, Kokam teamed up with Korean utility Kepco to install what was then said to be the world’s largest NMC system. The 24-megawatt scheme was one of three (the other two were 16MW) battery-based storage systems installed through the partnership in the country.