Satcon Announces Sale of Its Electronics and Motors Divisions
Satcon Technology Corporation (NASDAQ CM: SATC), a leading provider of utility scale renewable energy solutions for distributed power markets, announced today the sale of its Electronics and Motors divisions for cash proceeds of $5.6 million as part of its overall strategic restructuring plan. The divestiture of these non-strategic businesses will enable Satcon to focus its financial, technical, and marketing resources on the continued growth of their core industry leading photovoltaic and fuel cell power conditioning solutions business.
At close of these transactions, Satcon received gross cash payments, before expenses, of approximately $5.6 million. In addition, the buyers assumed accounts payable and other accrued expenses of approximately $1.8 million as part of the sale. Proceeds from both sales will be used to fund Satcon’s continued development of solutions for large-scale renewable energy.
The assets of Satcon’s Electronics division are being sold to Spectrum Microwave, Inc., a subsidiary of Spectrum Control, Inc. (NASDAQ: SPEC). The assets of the Motors division (Satcon Power Systems, US) are being sold to US Hybrid Corporation, a private company.
“We are pleased to collaborate with Spectrum and US Hybrid and are confident that these transactions will strengthen each of our positions in our respective markets,” said Steve Rhoades, President and Chief Executive Officer of Satcon. “These changes will allow Satcon to more effectively align our resources to accelerate execution of our core strategy of providing best in class power conditioning solutions to the rapidly growing photovoltaic and fuel cell power markets.”
Rhoades concluded, “Satcon’s Electronics and Motors organizations have achieved great technical advancements and have been key assets for us over the years. We greatly appreciate the hard work and accomplishments of all of the employees of these units and wish them success in their new companies.”
Stonecroft Capital LLC advised Satcon on both transactions.
About Satcon
Satcon Technology Corporation is a leading provider of utility scale distributed power solutions for the renewable energy market, enabling the industry’s most advanced reliable and proven clean energy alternatives. For over 22 years, Satcon has designed and delivered the next generation of efficient energy systems for solar photovoltaic, stationary fuel cells, wind-turbines, and energy storage systems. To learn more about Satcon, please visit www.Satcon.com.
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