FREMONT, Calif. - Nextracker (NASDAQ: NXT), a prominent provider of solar tracker and software solutions, has completed the acquisition of renewable energy company Ojjo for an all-cash deal valued at approximately $119 million. The transaction, which closed on June 20, 2024, is expected to enhance Nextracker's offerings in the utility-scale solar market, particularly in challenging soil conditions.
Ojjo, a U.S.-based company specializing in foundation technology for solar power generation, will complement Nextracker's smart solar tracker systems with its foundation technology, promising a more comprehensive solution to engineering procurement construction companies (EPCs) and solar power plant developers. This integrated approach aims to simplify project design and procurement while reducing risks associated with the installation of solar projects.
The acquisition will not only expand Nextracker's addressable market but also bolster its foundation capabilities, potentially accelerating the development of new solar foundation solutions. Additionally, the merger is anticipated to create value for customers by offering a more cost-effective model through integrated tracker and foundation systems.
Dan Shugar, founder and CEO of Nextracker, expressed enthusiasm for the acquisition, emphasizing the value of integrated solutions and the technological expertise that Ojjo brings to the table. Mike Miskovsky, the outgoing CEO of Ojjo, also remarked on the strategic fit between the two companies and the potential for Nextracker to maximize the technology's impact in the marketplace.
With this acquisition, Nextracker's patented technology portfolio will grow to over 600 patents issued and pending. The company, which operates in forty countries, is known for its solar tracker technologies that optimize energy production and plant performance in solar projects.
While the financial impact of the transaction is not expected to be material to Nextracker's fiscal 2025 results, the strategic benefits could significantly enhance the company's product offerings and market position. This news is based on a press release statement from Nextracker.
In other recent news, Flex (NASDAQ:FLEX), a global manufacturing partner, has made a strategic move to acquire FreeFlow, an asset disposition and digital circular economy tracking specialist. This acquisition is aimed at enhancing Flex's product lifecycle services and promoting sustainability. With FreeFlow's platform, Flex plans to offer its customers the opportunity to generate additional revenue and support environmental commitments by extending the life of their products. The company also intends to expand FreeFlow's services into more industry segments and regions.
In terms of financial performance, Flex has reported resilient growth in its Q4 and fiscal year 2024 results, despite a decline in revenue. The company's Q4 revenue was $6.2 billion, marking a 12% year-over-year decrease, and the full-year revenue was $26.4 billion, a 7% drop. However, key profitability metrics such as gross profit, operating income, and earnings per share (EPS) showed an increase. The gross profit for the quarter improved to $532 million, while for the year, it reached $2.1 billion. Operating income rose by 3% to $1.3 billion, and EPS saw an 11% increase to $2.15.
Looking ahead, Flex's outlook for fiscal 2025 includes a prediction of flat to 3% decline in revenue, with adjusted operating margins between 5.2% and 5.4%, and an adjusted EPS between $2.30 and $2.50.
InvestingPro Insights
As Nextracker (NASDAQ: NXT) solidifies its market position with the acquisition of Ojjo, it's worth considering the company's financial metrics and market performance to understand the broader investment context. Here are some real-time data and insights from InvestingPro that might be of interest:
InvestingPro Data:
- Market Cap (Adjusted): $12.43B USD
- P/E Ratio: 13.58, suggesting that the company is trading at a reasonable valuation relative to its earnings.
- Gross Profit Margin (last twelve months as of Q4 2024): 7.65%, indicating the profitability of the company's sales before operating costs and overheads are taken into account.
InvestingPro Tips:
- Nextracker has been recognized as a prominent player in the Electronic Equipment, Instruments & Components industry, which aligns with the strategic acquisition of Ojjo to enhance its offerings in the utility-scale solar market.
- The company is trading at a low revenue valuation multiple, which could signify a potential value opportunity for investors considering the company's recent expansion and growth initiatives.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available for Nextracker, which can be accessed at https://www.investing.com/pro/NXT. These tips provide further insights into the company's stock performance, industry position, and financial health. Moreover, for those seeking to take advantage of these expert insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 12 more InvestingPro Tips available that could provide valuable guidance for your investment decisions.
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