- Flex has announced $500 million convertible equity investment by TPG Rise Climate for Nextracker
- It implies a $3.0 billion enterprise value for Nextracker and preps it to launch its IPO in the future
- Flex said it will start reporting Nextracker as a separate operating segment after the duo entered a separation agreement
Nextracker is entering a new phase of growth, with its parent Flex spinning off one of the global leading solar tracker suppliers to operate as a separate entity, and selling an equity stake in the US company to global climate investment platform TPG Rise Climate for $500 million.
The $500 million convertible equity investment represents an implied $3.0 billion enterprise value for the tracker company, stated Flex. Backing of TPG Rise Climate, the climate investment arm of TPG Rise, will enable Nextracker to support its long-term growth plans. TPG gets 2 seats on the Nextracker board.
This strategic investment will also back Nextracker’s plans to go public with an initial public offering (IPO) whose timing wasn’t announced. It will be subject to the Securities and Exchange Commission’s (SEC) review process. Flex CEO Revathi Advaithi said, “We continue to look at the market and will evaluate the right time to do a transaction, but we remain committed to creating value for shareholders.”
Both Flex and Nextracker have also entered a separation agreement for the latter to spin-off as a separate business entity. Flex said it will start reporting Nextracker business as a separate operating segment. Nextracker has been operating as an independent subsidiary of Flex since 2015.
With its plans for an IPO, Nextracker will follow the likes of its peers to launch itself as a public company. Array Technologies and FTC Solar went public in the last 2 years, too (see US Solar Tracker Supplier Eyeing $100 Million Through IPO). And with its pockets full of money, Array Technologies recently announced to take over its competitor STI Norland (see World’s ‘Largest’ Solar Tracker Company).
In April 2021, TaiyangNews released our first survey on solar trackers covering 36 tracker products from 19 companies (see TaiyangNews Solar Trackers Market Survey 2021).