Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
SunPower Buys PowerLight: $265M [Red Herring]
Summary: Yesterday, solar power chipmaker SunPower Corp. announced it was acquiring privately held PowerLight Corp., a designer of solar energy systems. The deal, valued at $332 million dollars in cash and stock benefits both companies; SunPower because it diversifies its stake in the solar power business, and PowerLight because it has been been looking to go public for some time. SunPower, which is owned by Cypress Semiconductor Corp., reported sales of $11 million just two years ago. This year, analysts project sales will reach $235 million and next year once the merger takes hold, sales should hit $600 million - an indication of how far the alternative energy market has come in a relatively short time.
Related links: Media coverage: PR Newswire • WSJ. Commentary: SunPower's Powerlight Acquisition: Both Companies Win • SunPower, PowerLight Merger: Company Aims to Reduce Solar Costs • SunPower Predicts Rosey, But Slow, Outlook for PV Solar • The Long Case for Solar Powered SunPower.
Potentially impacted stocks and ETFs: SunPower (NASDAQ:SPWR), Cypress Semiconductor (NASDAQ:CY). Competitors: Evergreen Solar (ESLR), Energy Conversion Devices (NASDAQ:ENER), DayStar Technologies (NASDAQ:DSTI) • ETFs: PowerShares WilderHill Clean Energy (NYSEARCA:PBW).
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