AMSC, a global solutions provider serving wind and grid leaders, announces that its Share Purchase Agreement (“the Agreement”) with the shareholders of The Switch Engineering Oy (“The Switch”) dated March 12, 2011, as amended on June 29, 2011, has been terminated due to adverse market conditions for a financing required to fund the acquisition. Per the terms of the amended Agreement, The Switch shareholders will retain the €14.2 million (US$ 20.6 million) advance payment that was made by AMSC on June 29, 2011 as the break-up fee. The break-up fee will be recorded as an expense in AMSC’s second fiscal quarter, which ended on September 30, 2011.
“While AMSC and The Switch have mutually agreed to terminate our acquisition agreement, we continue to see strong synergies between our two companies and expect to continue to work collaboratively on drivetrain solutions that increase wind turbine reliability and lower the cost of energy,” said AMSC President and Chief Executive Officer Daniel P. McGahn.
AMSC (formerly American Superconductor) generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner… better energy. Through its Windtec Solutions, AMSC enables manufacturers to launch best-in-class wind turbines quickly, effectively and profitably. Through its Gridtec Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The company’s solutions are now powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts, with operations in Asia, Australia, Europe, and North America. For more information, please visit www.amsc.com.