Ayala Corp unit buys majority stake in pioneering US solar firm

Conglomerate Ayala Corp. has expanded its footprint in solar energy with the acquisition of a controlling stake in Merlin Solar Technologies Inc., a Silicon Valley-based firm that has developed a game-changing solar farming technology and whose operations can be scaled up by a manufacturing hub in the Philippines.

The transaction was done through AC Industrials’ subsidiary, ACI Solar Holdings NA, which already made a minority investment in Merlin in 2016. AC Industrials will thus have an ownership of 78.2 percent in Merlin after the transaction and completion of other related activities.

Merlin is a startup firm that has developed a technology to enhance the efficiency of solar panels. At the core of its patented technology are innovative metal grids that extract more solar power compared to standard panels, dramatically improving the reliability performance and ruggedness of the solar panels. This technology is deemed suitable for demanding applications, such as in transportation and bigger infrastructure.

Headquartered in San Jose, California, Merlin also has additional manufacturing facilities in Thailand. Moving forward, Ayala Corp. told the Philippine Stock Exchange that Merlin would also establish a manufacturing presence in the Philippines through Integrated Microelectronics Inc. (IMI), a subsidiary of AC Industrials.

“At Ayala, we believe that the future will be shaped by the innovation we are seeing today. We are excited to have the opportunity to add Merlin’s solar technology to our portfolio. The proprietary solar solutions that Merlin brings to the table are key to AC Industrials’ strategy of working on disruptive technologies, and aligns with the Ayala group’s drive to invest in emerging, innovative spaces, such as in e-commerce and fintech,” Ayala Corp. and AC Industrials chair Jaime Augusto Zobel de Ayala said in a press statement on Monday.

AC Industrials CEO Arthur Tan added: “The acquisition of Merlin forms part of AC Industrials’ strategy to own, develop, and commercialize disruptive technologies in rapidly-transforming industries. Merlin’s patent and IP (intellectual property) portfolio allows a differentiated value proposition in solar which, when combined with AC Industrials’ core strength of providing manufacturing scale through IMI’s global platform, will provide AC Industrials with the opportunity to disrupt the solar energy industry.”

Since its formation in 2016, AC Industrials has built a portfolio of businesses in industrial technologies including various platforms in electronics manufacturing, vehicle assembly, vehicle retail and distribution and other emerging technologies.

While conventional forms of solar deployment rely on aluminum-framed, tempered glass constructs, the weight and rigidity of such installations prevent their use in applications that demand rugged, lightweight, flex tolerant, and aesthetic appeal. This has limited their use primarily to large grid-connected solar farm applications.

Merlin thus developed innovative crystalline silicon-based solar solutions which address demanding deployments such as on metal roofs, auxiliary power for transportation, flush mounted residential solar and military applications. —DORIS DUMLAO-ABADILLA