AMSC and The Switch Terminate Acquisition Agreement
American Superconductor (AMSC) announced that its Share Purchase Agreement with the shareholders of The Switch Engineering Oy has been terminated due to adverse market conditions for a financing required to fund the acquisition. Per the terms of the amended Agreement, The Switch shareholders will retain the €14.2 million (US$ 20.6 million) advance payment that was made by AMSC on June 29, 2011 as the break-up fee. The break-up fee will be recorded as an expense in AMSC’s second fiscal quarter, which ended on September 30, 2011.
"While AMSC and The Switch have mutually agreed to terminate our acquisition agreement, we continue to see strong synergies between our two companies and expect to continue to work collaboratively on drivetrain solutions that increase wind turbine reliability and lower the cost of energy," said AMSC President and Chief Executive Officer Daniel P. McGahn.