28 Jun '11, 2pm

Is Enphase a Worthy IPO Candidate?: Microinverters and their distributed optimization cousins are on the lips

As front runner in the hot distributed optimziation space, the natural thought is acquisition. Considering the long research and development lead time to produce a reliable microinverter, why shouldn't a company flush with cash and looking for a quick entrance simply buy Enphase. If Enphase does close the $51 million round (of which they're well on their way), it would result in $158 million in VC funding. With a 3x-5x multiple, Enphase's asking price quickly jumps to $450 million to $750 million--an expensive price tag for a company with a limited addressable market and a field of new competition. We're not ruling it out, but consider it highly unlikely. While we’re not saying the companies are similar in any other way, Solyndra managed to survive “adverse market conditions” through private fundraising when it pulled its IPO. Given the potential adverse market conditions ...

Full article: http://www.greentechmedia.com/articles/read/is-enphase-a-...

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