Flextronics acquires NEXTracker

Solar trackers have been fast gaining traction in recent times in large scale solar utility projects, as they increase the efficiency by 20-40% with a lower percentage increase in costs. The better LCOE of tracker projects makes it a better alternative to plain vanilla solar projects. NexTracker has been one of the biggest tracker companies in the USA, winning large gigawatt orders from the likes of SunEdison and others. Single axis trackers are also getting more traction in emerging markets like India and China. Note most of the tracker manufacturers have been bought by the large US solar developers like First Solar and SunPower. These companies have been integrating tracker options into their product offerings. There are only a few independent tracker makers and now NEXTracker has been taken over by one of the largest electrical and electronic OEMs Flextronics.

Read more about Solar Tracker Manufacturers.

I am not entirely sure why Flextronics bought NEXTracker, since it is not a major solar developer though it does make modules and inverters for other solar makers like SunEdison. Flextronics maybe looking for a larger solar play in the solar development space. Its biggest competitor Foxconn has announced a multi-billion dollar plan to make solar modules and develop solar farms in India. Mayble Flextronics too sees a future in making large solar farms and is buying NEXTracker for that reason.

Flextronics (NASDAQ: FLEX) has entered into a definitive agreement to acquire NEXTracker, a leader in smart solar tracking solutions. NEXTracker designs and manufactures one of the world’s most advanced single-axis photovoltaic (PV) trackers that orients PV panels to maximize energy output. The acquisition will augment the Flex Energy business and contribute to its more than $1 billion in sales, and is expected to be accretive to Flex’s growth, margin, EPS and cash flow generation.