American Superconductor Corp. acquired Northeast Power Systems Inc. for $26 million in cash, plus 873,657 American Superconductor common shares.
New York-based Northeast Power Systems supplies medium voltage, metal-enclosed capacitor banks; harmonic filters; fast switching reactive power solutions; and surge protection products, according to an Oct. 5 news release.
"The addition of [Northeast Power Systems] to [American Superconductor's] Grid solutions is expected to accelerate our ability to achieve our goal of profitability and expand our offering of proprietary power electronics products in the industrial sector," said American Superconductor President and CEO Daniel McGahn.
The company aims to accelerate profitable growth independent of its wind business.
Also, American Superconductor said it expects its revenues in the second quarter of fiscal 2020 to be in the range of $20.5 million to $21.5 million, compared with the previous guidance of $17 million to $21 million.
The company also expect net loss and non-GAAP net loss for the fiscal second quarter to be lower than the previous guidance provided.