April 22, 2013 – ABB, a leading global power and automation technology group, and Power-One, a leader in renewable energy and efficient power conversion and power management solutions, today announced that ABB will acquire Power-One for $6.35 per share, or approximately $1.028 billion in equity, with the approval of both boards of directors.

The acquisition will make ABB Group a global leader in the solar inverter industry – the "smart hub" of solar photovoltaic power systems. According to the International Energy Agency, the photovoltaic inverter market will grow at an annual rate of more than 10% by 2021. Factors such as rising energy demand, especially in emerging markets, rising electricity prices, and reduced costs contribute to the rapid growth of the inverter market.

ABB Group CEO Hao Kun said: "As photovoltaic power generation rapidly approaches 'grid parity', solar energy is increasingly becoming a major force in reshaping the future energy structure. Power-One is well-managed and is a widely recognized technology innovator in the industry, focusing on the most attractive and intelligent solar PV products. ABB and Power-One have joined forces to align with our 2015 strategy and make ABB a leader in the photovoltaic power generation sector

A global leader with a strong competitive advantage that creates value for customers, employees and shareholders. ”

Power-One has the most comprehensive portfolio of photovoltaic inverters on the market, covering a wide range of applications from homes to power enterprises, as well as an extensive global production footprint. In addition, Power-One has a power solutions business similar to ABB's power conversion business unit. Power-One employs nearly 3,300 people in China, Italy, the United States, and Slovakia. In 2012, Power-One generated $1 billion in sales and earnings before interest, taxes, depreciation and amortization of $120 million.

Richard J. Thompson, CEO of Power-One, said, "This acquisition will bring significant value to shareholders and drive Power-One's accelerated growth. Together, we can better meet the growing global demand for innovative renewable energy solutions and strengthen our global market leadership. I believe ABB is the ideal partner and now is the ideal time for both parties to work together. ABB's leading power and automation portfolio, balanced global business layout and service architecture make it an important player in the solar PV market. ABB has been rolling out its solutions to the solar PV industry for many years and expects to generate more than $100 million in PV inverter sales in 2013. Photovoltaic inverters are one of the fastest-growing technologies in the field of power electronics and require continuous investment in research and development. In 2012, ABB invested a total of $1.5 billion in R&D.

Power-One will be merged into the ABB Group's discrete automation and motion control business. "The combination of two successful companies will create compelling value growth that is built on innovation. Inverters will give us the opportunity to differentiate ourselves in terms of global market, high quality and technological leadership. This acquisition will support our business unit's renewable energy strategy and help strengthen our strengths in the power electronics sector. ”

The transaction is a merger and acquisition and is subject to special closing conditions, including approval at a special meeting of Power-One shareholders and approval of special closing conditions. The M&A agreement includes certain protective mechanisms for consent to the transaction. Silver Lake Sumeru-affiliated investment fund has signed an agreement to agree to the merger. The acquisition is expected to be completed in the second half of 2013. ABB will use its own funds to complete the transaction.

Credit Suisse is ABB's financial advisory arm, and Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to ABB. Goldman Sachs & Co. is Power-One's financial advisory firm, and Gibson, Dunn & Crutcher LLP is Power-One's legal advisor.