Power and automation technology firm ABB said on Monday said it will acquire US-based solar energy company Power-One for over $1 billion (around Rs 5,400 crore) to become a global leader in solar photo-voltaic inverters.

“ABB and Power-One today announced that their respective boards have agreed to a transaction in which ABB will acquire Power-One for $6.35 per share in cash or $1,028 million equity value, which includes Power-One’s net cash of $266 million,” the company said in a statement.

The transaction would position ABB as a leading global supplier of solar photo-voltaic inverters to a market forecast to grow by more than 10 per cent per year until 2021, the statement said.

This rapid growth is being driven by rising energy demand, especially in emerging markets, rising electricity prices and declining costs, it said.

“The combination of Power-One and ABB is fully in line with our 2015 strategy and would create a global player with the scale to compete successfully and create value for customers, employees and shareholders,” ABB Chief Executive Officer Joe Hogan said.

ABB’s leading portfolio in power and automation, global footprint and service organisation makes it a natural player in solar photo-voltaic inverters, he said.

“For many years ABB has brought its solutions to the solar photo-voltaic inverters industry and is on track to generate sales of more than $100 million of these products in 2013,” he added.

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