Enphase (ENPH) Acquires Software Solution Company of Germany
Enphase Energy, Inc. ENPH recently announced the acquisition of the Germany-based software company, GreenCom Networks, to boost its home energy management capabilities. In this context, it is imperative to mention GreenCom Networks that offers Internet of Things (IoT) software solutions to customers, boasts the capabilities of smoothening the connection process for them as well as manages other distributed energy devices within the home.
To capture the larger share of the expanding solar market and improve customer reliability, the company has a track record of making valuable acquisitions. In this regard, GreenCom’s loT software solution platform provides Enphase Energy with a competitive edge to build its customer base in the European region by providing services that encourage the full usage of the amount of self-generated energy for homeowners.
The acquisition, which is expected to reach conclusion in the fourth quarter of 2022, is subject to customary closing conditions and regulatory approvals.
Benefits of the Acquisition
GreenCom Networks’ in-depth experience in integrating devices, such as solar inverters, battery systems, EV chargers and heat pumps, will not only encourage the easy integration of Enphase’s microinverters and batteries with third-party EV chargers and heat pumps but also facilitate homeowners’ control over devices and energy management through Enphase App.
Moreover, it will reduce the dependence of homeowners on the grid and aid in adding more features for managing energy in homes via green EV charging and green heating with heat pumps. Such efforts may also provide relief for homeowners by reducing their energy bills amid rising energy prices in Europe.
The high-quality acquisition by ENPH enhances its footprint globally and augments its customer base, thus providing a platform to boost its overall growth trajectory.
Peer Moves
Companies make acquisitions to widen their product portfolio as well as expand their footprint in different markets. Enphase apart, other solar companies that have entered into strategic agreements to boost their business strength are as follows:
In June 2022, Canadian Solar’s CSIQ arm, Recurrent Energy, announced the acquisition of two standalone energy storage projects from Black Mountain Energy Storage (BMES). The projects, which are in the South Load Zone of the Texas ERCOT market, are anticipated to store up to 200 megawatt-hours of energy each.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings suggests growth of 135.4% from the prior-year reported figure. CSIQ shares have returned 19.4% in the past year.
In October 2021, SunPower SPWR acquired Blue Raven Solar to quickly expand in the solar market to serve more customers in underpenetrated areas, including the Northwest and Mid-Atlantic regions.
The Zacks Consensus Estimate for SunPower’s 2022 earnings is pegged at 28 cents per share, which implies a growth rate of a solid 300% from the prior-year reported figure. SPWR shares have rallied 14.6% in the past year.
In September 2021, ReneSola SOL announced that the European Solar Energy Development joint venture, a joint venture company of ReneSola Power and Eiffel Investment Group, completed the acquisition of its first batch of solar projects, with a combined capacity of 200 megawatts, in multiple European countries, including France and Poland.
The Zacks Consensus Estimate for ReneSola’s 2022 sales indicates an improvement of 34.6% over the prior-year reported figure. Shares of SOL have delivered 26.7% in the past three months.
Price Movement
In the past year, shares of Enphase Energy have rallied 64.3% compared with the industry’s growth of 3%.
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Zacks Rank
Enphase Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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