stock rocketed 15% in afternoon trading after the installer of rooftop solar systems said that it had signed a deal to buy solar panel maker Silevo for as much as $350 million, Investor’s Business Daily reported.
The announcement was made in a blog post by SolarCity Chairman Elon Musk and other top execs on the company's website. Fremont, California-based Silevo makes photovoltaic solar panels. Musk noted in his blog post that Silevo's solar products "have demonstrated a unique combination of high energy output and low cost."
"Our intent is to combine what we believe is fundamentally the best photovoltaic technology with massive economies of scale to achieve a breakthrough in the cost of solar power," Musk wrote. "Although no other acquisitions are currently being contemplated, SolarCity may acquire additional photovoltaics companies as needed to ensure clear technology leadership and we plan to grow internal engineering significantly."
SolarCity will pay $200 million in stock for Silevo and up to $150 million more in stock if Silevo meets certain conditions, according to SolarCity's filing with the Securities and Exchange Commission on Tuesday.
SCTY was recommended in Timothy Lutts’ “Stocks to Buy and Hold Forever” for Cabot Wealth Advisory. Tim is the Chief Analyst of Cabot Stock of the Month