Vantaa, Finland and Devens, MA, US March 14, 2011 – “In today’s market, there is a great demand for multi-megawatt turbines utilizing advanced power electronics and permanent magnet generators – a trend that AMSC and The Switch can take advantage of,” said Jukka-Pekka Mäkinen, President and Chief Executive Officer of The Switch. “From virtually all angles – culturally, commercially and strategically – the synergies of The Switch and AMSC combination were immediately evident to both of our organizations. We will now be able to exploit our combined engineering and manufacturing expertise to speed up our clients’ access to markets as well as to significantly increase the number of wind turbines ‘Powered by AMSC.’”
“With highly complementary engineering capabilities and product offerings, the combination of The Switch and AMSC will provide significant additional value for our customers, partners, and investors,” said Greg Yurek, founder and chief executive officer of AMSC. “Both AMSC and The Switch are well positioned in Asia, which is now the world’s largest and fastest growing wind power market. Our combined company is expected to be serving China’s three largest wind turbine manufacturers – Sinovel, Goldwind and Dongfang – in various capacities. The Switch will also significantly strengthen AMSC’s presence in Western wind markets with customers such as GE and create a new channel to market for AMSC in addition to our Windtec™ licensees. In short, this combination will create a global wind powerhouse.”
For calendar year 2010, The Switch generated EUR 134.6 million in total revenue and EUR 11.8 million in net income. The transaction is valued at EUR 190 million, with EUR 133 million to be paid in cash and the remainder to be paid in the form of AMSC stock. AMSC plans to use its existing cash balance to finance the deal. Closing of the transaction, which has been approved by both companies’ boards of directors and is subject to customary closing conditions and regulatory issues, is expected by August 31, 2011.
Source: The Switch press release 14.3.2011