Vantaa, Finland October 31, 2011 – The Switch, a leading provider of permanent magnet generator and full-power converter packages, told today that it will continue to pursue its successful business strategy as an independent company following the announcement by its shareholders and power technology company AMSC regarding the termination of the previously announced acquisition agreement. The Switch is well-positioned to continue to serve global wind power manufacturers as a partner of choice with the preferred technology for renewable energy. The success of The Switch has been based on partnerships, and AMSC has become yet another valuable partner for The Switch despite the acquisition outcome.
“The fundamentals of our business strategy remain in place and the outcome of the proposed acquisition will not change our position in the market. We are an independent component supplier with the preferred technology required by the market, and our intent is to be the partner of choice in renewable energy. We have been able to develop The Switch business offering and our company even during challenging times in the global wind power market, and this makes us stronger than ever,” says The Switch President and CEO Jukka-Pekka Mäkinen.
Mäkinen continues: “We have benefited from close cooperation with AMSC and have gained an even better view of the industry. As for future collaboration, we will continue to develop cooperation and joint sales opportunities for drive train solutions to increase wind turbine reliability and lower the cost for our customers. It is clear that drive train components will have an important role as wind turbine sizes increase. Turbine manufacturers are looking for value-adding partners, and that’s what we are.”
The Switch shareholders and AMSC announced on October 31 that they have agreed to terminate the acquisition agreement, dated on March 12 and as amended on June 29, 2011, due to adverse market conditions for the financing required to fund the acquisition. Per the terms of the amended acquisition agreement, The Switch shareholders will retain the €14.2 million (US$ 20.3 million) advance payment that was made by AMSC on June 29, 2011 as a break-up fee.
