SunPower Signs LOI to Acquire Cobalt Power Systems

SunPower signed an LOI for an all-equity transaction to acquire Cobalt Power Systems of Mountain View, California, a company with $35M in revenue and 96 employees. While SunPower currently expects that Cobalt and SunPower will reach a definitive agreement to purchase Cobalt, the non-binding letter of intent provides that either Cobalt or SunPower are each free to abandon negotiations with respect to the proposed acquisition at any time and for any reason or for no reason, and the decision to so abandon negotiations and not proceed with the acquisition shall not be subject to legal challenge, except for breaches by Cobalt of the exclusivity terms set forth in the letter of intent.