Northern Power Systems Corp., a next generation renewable energy technology company, announced that WEG S.A. and NPS have executed a definitive agreement for WEG to acquire Northern Power System’s Utility Wind assets.
Under the agreement, the proven utility scale direct drive technology developed and successfully deployed to date by both NPS and WEG will be solely owned by WEG and its affiliates.
All assets, including the related patent portfolio for utility wind greater than 1.5MW and the engineering team largely responsible for developing this technology, become part of WEG. The engineering team will remain based in Vermont and will work alongside the Brazilian based wind engineering team to continue successful product development work.
The companies plan an on-going collaboration providing wind solutions around the world, WEG focusing on utility scale wind and NPS on distributed energy solutions, including distributed wind.
WEG will continue to compensate NPS under the existing arrangement paying royalties for sales in South America resulting in future payments of up to an approximately $10 million. Additionally, WEG will pay NPS up to a further $17.5 million in royalty payments over the next decade for turbines shipped anywhere outside of South America.
WEG and NPS started collaborating in 2013 and since then have successfully introduced a permanent magnet direct drive wind turbines solution in the Brazilian market.
Jones Day has advised WEG in its acquisition of Northern Power System’s Utility Wind assets with a team led by Corporate partner David Vander Haar.
Involved fees earner: David Vander Haar – Jones Day;
Law Firms: Jones Day;
Clients: WEG S.A.;