Solar Stocks Surge Following Canadian Solar's Acquisition Of Sharp's Recurrent Energy

Solar companies added to Monday's gains on Tuesday following the annoucement that Canadian Solar Inc. CSIQ will acquire Recurrent Energy, LLC, the solar operation of Sharp Corporation (ADR) SHCAY, for $265 million.

The acquisition will increase Canadian Solar's total solar project pipeline by approximately 4.0 GW to 8.5 GW, and its late-stage project pipeline by approximately 1.0 GW to 2.4 GW, according to the company’s press release.

Canadian Solar noted that the deal represents an estimated revenue opportunity of at least $2.3 billion under a build and sell business model.

Sharp paid $305 million for Recurrent Energy LLC in 2010 and "had been looking for a buyer since at least September" while Sharp forecasted a $257 million annual loss,” according to Bloomberg.

Shares of Canadian Solar Inc. soared 23.10 percent following the news, trading at $26.25.

SolarCity Corp SCTY was also higher, trading at 53.44, up 1.36 percent and SunEdison Inc SUNE recently traded at $20.39, a gain of 2 percent.

Larger gains were seen in shares of SunPower Corporation SPWR which recently traded at $27.64, up 7.30 percent and First Solar, Inc. FSLR which surged 5.10 percent to $47.80.

Sharp Corporation (ADR) also surged higher and recently traded at $2.06, up 6.46 percent.