SunPower Buys PowerLight

It pays $265 million.
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SunPower

(SPWR) - Get Report

, a manufacturer of solar cells and solar panels, said Wednesday it would buy privately owned solar systems provider,

PowerLight

.

The total consideration for the acquisition is $265 million upfront plus a retention carve-out of $67.5 million vesting over two to four years. The aggregate consideration consists of about $130 million in cash and $202.5 million in stock. The acquisition is expected to boost SunPower's non-GAAP earnings.

The transaction is subject to approval by PowerLight's shareholders and regulators. The deal is expected to be closed by the first quarter of 2007.

"Together, SunPower and PowerLight aim to accelerate the reduction of solar power costs to compete with retail electric rates without incentives," the San Jose, Calif.-based company said.

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