ABB and Power-One Inc, a provider of renewable energy and of energy-efficient power conversion and power management solutions, have announced that their boards of directors 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.

The transaction would position ABB as a leading global supplier of solar inverters – the “intelligence” behind a solar PV system – to a market forecasted by the International Energy Agency to grow by more than 10 per cent per year until 2021, a release by ABB noted. This rapid growth is being driven by rising energy demand, especially in emerging markets, rising electricity prices and declining costs.