AMSC Needs Additional Financing To Acquire The Switch

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American Superconductor Corp. (AMSC) has entered into an amendment to its definitive purchase agreement to acquire The Switch Engineering Oy, a power technologies company headquartered in Finland.

Under the terms of this amended agreement, AMSC has paid the sellers 14.2 million euros, or approximately 7.5% of the transaction's 190 million euro purchase price, in cash as an advance payment.

The termination date of the agreement has been extended to Sept. 30, with the option for two additional 30-day extensions to allow AMSC time to secure additional financing sufficient to fund the acquisition and future working capital requirements.

If the acquisition is not completed by the termination date due to a lack of financing or a material adverse change in The Switch's business and the agreement is terminated, the aforementioned 14.2 million euros advance payment would be retained by the sellers as the breakup fee.

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