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Category: Recurrent Energy

Sharp Acquires Recurrent Energy for Up To $305 Million

Recurrent Energy

Recurrent Energy and Sharp Corporation anounced earlier this month that they have reached a definitive agreement for Sharp to acquire Recurrent Energy for up to $305 million in cash at closing, subject to balance sheet adjustments.  The acquisition is expected to close before the end of 2010, subject to customary closing conditions and regulatory approvals.  Recurrent Energy is a Hudson Clean Energy Partners portfolio company (see prior Green VC coverage). Other shareholders include Mohr Davidow Ventures.

Recurrent Energy, based in San Francisco, is a solar project developer and generating company with a 2 GW pipeline.  Recurrent Energy will retain its name and operate as a subsidiary of Sharp after the acquisition. Arno Harris, CEO of Recurrent Energy, will continue to lead the company and report to Toshishige Hamano, Sharp’s Executive Vice President responsible for overseas business.  Recurrent Energy’s executive team and employees will also continue with the company.

"We are excited to have reached a definitive agreement for Sharp to acquire Recurrent Energy, a leading solar project developer and generating company with a 2 GW pipeline. It is essential for Sharp to function as a developer in the photovoltaic field, in order to further expand its business in this area. With Recurrent Energy’s know-how as a developer, Sharp aims to become a total solutions company in the photovoltaic field, extending from developing and producing solar cells and modules to developing and marketing power generation plants," said Toshishige Hamano.

"We're thrilled to reach this agreement with Sharp, a company known for its global leadership in solar technology," said Arno Harris, CEO, Recurrent Energy. "Sharp's support will help us to accelerate our growth and further cement Recurrent Energy’s goal to build the leading global solar generating company."

"We’ve enjoyed a tremendous partnership with the Recurrent Energy team and believe Sharp is the right partner to accelerate the growth of the business," said Neil Auerbach, a Recurrent Energy director and Managing Partner at Hudson Clean Energy Partners.

Recurrent Energy Obtains $75 Million from Hudson Clean Energy Partners

Recurrent Energy

At the Intersolar North America conference, Recurrent Energy announced that it has partnered with private equity firm Hudson Clean Energy Partners and received an initial $75 million commitment from the firm.  Recurrent Energy said that it will use the funds to expand its business in North America and emerging markets worldwide.

Recurrent Energy provides what it terms Solar as a Service.  It develops, owns, and operates distributed solar power systems and sells energy to large scale energy users at grid-competitive rates via a Power Purchase Agreement (PPA). Earlier this year, the City and County of San Francisco announced plans for a 5 Megawatt system with Recurrent Energy – the largest municipal solar photovoltaic project in U.S. history.

"With today’s announcement, we’re combining the two key ingredients that are necessary to bring solar power to scale: access to capital and the expertise to put it to use," said Arno Harris, Chief Executive Officer, Recurrent Energy. "We’re excited to work with Hudson and its team of clean energy experts. It was clear from day one that we share a common vision of what it takes to be successful in the downstream solar market."

"The main factors in our decision to partner with Recurrent Energy were the quality of its management team and their vision for how to scale the business – both of which will enable the company to produce a major leap forward in the adoption of onsite solar electricity," said Neil Auerbach, Founder and Co-Managing Partner, Hudson. "We anticipate that this is just the beginning of an even larger financing relationship, and we are committed to providing Recurrent Energy with the resources it will need to be a powerhouse in solar energy."

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