WorldWater acquiring solar developer ENTECH

Shares of WorldWater & Solar Technologies (OTCBB: WWAT) of New Jersey are up almost 10 percent this morning on the announcement of a plan to acquire Texas-based solar concentration developer ENTECH.

The agreement is expected to be completed before the end of the second quarter, with closing scheduled soon thereafter.

A letter of intent specifies that WorldWater is to pay ENTECH shareholders $6.3 million in cash, along with $12 million in WorldWater common stock. The deal also includes earn-out provisions for ENTECH’s stockholders and management if certain performance benchmarks are met.

Quentin T. Kelly, Chairman and CEO, said the two companies had been talking all year.

"While it has clearly taken longer than expected to finalize the terms of this important acquisition, we remain very excited about the opportunities that ENTECH brings to WorldWater."

ENTECH’s solar concentrator technology enhances the efficiency of large solar applications, using up to 95% less silicon to generate the power of conventional flat plate solar modules.

"As a combined entity, we can provide solar systems capable of generating and delivering electrical and thermal energy at a price competitive with the grid—even before rebates," said Kelly.

The two companies say they've been working together on a number of megawatt and multi-megawatt RFPs.

WorldWater & Solar Technologies is a full-service, international solar electric engineering and water management company.

ENTECH provides advanced solar energy technology for a variety of applications, ranging from daylighting systems for commercial buildings to solar power arrays for spacecraft. ENTECH’s Fresnel lenses capture sunlight and focus it onto small solar cells, thereby reducing electricity costs compared to conventional flat-plate (planar) solar energy approaches.

The company was identified as a solar front-runner by Andrew Mill of Europe's NaREC in an interview with the Cleantech Group last October (see Andrew Mill, energy advisor to the UK, on what greentech companies he watches and why.)

Stock of WorldWater hit as much as $.725 per share this morning, up from a previous close of $.65.