FREMONT, CA - Nextracker Inc., a company specializing in search, detection, navigation, guidance, and aeronautical systems, has announced the acquisition of Ojjo Inc., a renewable energy firm known for its solar power generation foundation technology and services. The transaction, which took place on Thursday, is valued at approximately $119 million in an all-cash deal.
The acquisition is subject to customary purchase price adjustments based on working capital and other factors. Nextracker, which is incorporated in Delaware and headquartered in Fremont, California, is listed on the Nasdaq Stock Market under the ticker symbol NXT. The company's principal executive offices are located at 6200 Paseo Padre Parkway, Fremont, California 94555.
Nextracker's strategic move to acquire Ojjo Inc. aligns with its business focus on manufacturing components for the renewable energy sector, particularly within utility-scale ground-mount applications for solar power generation. This transaction is expected to enhance Nextracker's product offerings and expand its footprint in the growing renewable energy market.
The completion of this acquisition marks a significant event for Nextracker, as it continues to position itself within the competitive landscape of the renewable energy industry. The purchase of Ojjo Inc. reflects Nextracker's commitment to investing in technologies that support sustainable energy solutions.
The financial details of the deal, including the $119 million cash consideration, were made public in a Form 8-K filed with the United States Securities and Exchange Commission on June 20, 2024. This regulatory filing provides investors and the public with essential information regarding the company's significant events.
Nextracker has not disclosed any further plans or strategies related to the integration of Ojjo Inc. into its operations. The acquisition is now among the latest developments in the renewable energy sector, as companies continue to seek opportunities to expand capabilities and drive innovation in sustainable technologies.
In other recent news, Nextracker has reported an impressive financial performance for fiscal year 2024, with a 40% year-over-year increase in revenue to $737 million and a doubling of adjusted EBITDA to $160 million. The company has provided a fiscal year 2025 revenue projection between $2.8 billion and $2.9 billion, with adjusted EBITDA expected to be between $600 million and $650 million.
Nextracker's recent acquisition of Ojjo is aimed at bolstering its position in the solar energy sector by offering cost-saving foundation solutions for utility-scale projects. The acquisition is expected to expand Nextracker's total addressable market for sites with difficult soil conditions and speed up the innovation of new solar foundation solutions.
Analysts from Citi, Piper Sandler, and BMO Capital have recently offered their perspectives on Nextracker's financial performance and future prospects. While Citi maintains a Neutral stance on the company with a $56 price target, Piper Sandler has reduced its price target to $60 despite maintaining an Overweight rating.
BMO Capital, on the other hand, has lowered its price target from $62 to $56, keeping a Market Perform rating. These recent developments reflect the ongoing attention and scrutiny Nextracker is receiving from the financial community.
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