Jun 7 2008
Solar Thin Films, Inc., a developer, manufacturer and marketer of manufacturing equipment for the production of "thin-film" amorphous silicon and CIGS photovoltaic modules, has signed a letter of intent to acquire a majority 60% interest in BudaSolar Technologies Co., Ltd. for an initial $3 million in working capital funding, with an option to purchase the remaining 40% minority interest, based on a multiple of earnings, in the combined company described below.
BudaSolar is a developer of thin film technologies and manufacturing equipment headquartered in Budapest, Hungary. The agreement contemplates consolidation of the two companies into a single entity to be called STF Technologies, Zrt. The proposed consolidation, which joins BudaSolar operations with Kraft Elektronikai Zrt, Solar Thin Film’s main operating subsidiary in Hungary, would strengthen the engineering team, secure local equipment manufacturing capacity, and expand production capability.
“This proposed agreement to invest in BudaSolar Technologies is another step forward in our goal to become a leader in supplying cost-effective thin film photovoltaic module manufacturing equipment,” said Peter Lewis, chief executive officer of Solar Thin Films. “We are joining together with a group of individuals who have led our industry in the design, installation and commissioning of turnkey amorphous silicon lines producing thin film amorphous silicon photovoltaic modules. BudaSolar offers Solar Thin Films leading-edge technical expertise in the development of amorphous silicon and micro-crystalline/amorphous tandem cells and some key BIPV technologies, as well as access to a strong pipeline of new business. Our combined expertise should offer us a strong competitive advantage in the marketplace.”