ICP Solar Technologies has entered into a binding Letter of Intent to acquire Ibersolar Energia, S.A.

Under the terms of the LOI, ICP will acquire 100 percent of the shares of Ibersolar.

The two companies stated: "The Parties agree and undertake to enter into a mutually agreeable definitive share purchase agreement and any other documents necessary for the acquisition within six weeks of the signing of the LOI, or as soon as practicable thereafter."

In addition, the closing of the acquisition is contingent upon financing by ICP of a minimum of $15 million on terms acceptable to both parties.

By acquiring Ibersolar, ICP is eyeing a 20-fold increase in the size of its business and strengthen its position in the European market.

"We expect to realise distribution synergies and cross-fertilisation of product lines immediately -- particularly with regard to our Sunsei Wireless Greenmeters -- and the acquisition is anticipated to be accretive to earnings within the first year of operation," said Sass Peress, chairman and CEO, ICP Solar.

Ibersolar Energia offers solar thermal systems, including high performance collectors, solar boilers, controllers, and thermal siphons, in addition to a range of PV modules and other products for the solar industry.