Israeli-founded firm SolarEdge Technologies, a maker of smart-energy solutions, is set to list on the S&P 500 index later this month, joining companies and multinationals such as Apple, Microsoft, Meta (Facebook), Pfizer and Netflix on the index, made up of 500 of the largest companies traded on either the New York Stock Exchange, the Nasdaq, or Cboe (Chicago Board Options Exchange). The announcement was made Thursday by the S&P Dow Jones Indices.
SolarEdge is currently listed on the S&P MidCap 400 (or S&P 400) and has been traded on the Nasdaq since 2015. Headquartered in Herzliya, the company is incorporated in the US and currently has a market cap of $16 billion. Firms must have a market cap of at least $13.1 billion to be listed on the S&P 500.
The market cap makes SolarEdge the second most-valuable Israeli company currently, after NICE Systems Ltd (worth $18.5 billion) and ahead of cybersecurity giant Check Point Software Technologies (worth $14.5 million), according to Israeli business daily Globes.
Founded in 2006, SolarEdge sought to make solar energy more affordable and widespread. It developed an inverter solution for harvesting and managing power in solar photovoltaic (PV) systems. In 2010, the company commercialized its SolarEdge direct current (DC) optimized inverter system to increase power generation and lower the cost of energy produced by the solar PV system.
“Being recognized as one of the top companies on Wall Street means that the company is one of the best businesses globally,” said Lior Handelsman, a co-founder of SolarEdge, alongside the late Guy Sella, Yoav Galin, Meir Adest, and Amir Fishelov. The company is led by CEO Zvi Lando, who joined in 2009.
Handelsman told The Times of Israel via email that beyond the recognition of the company’s success, it was also an “exciting moment for Israeli businesses and the country’s tech innovation ecosystem,” and “a demonstration that the world of sustainable energy is the future for our society.”
SolarEdge operates worldwide, with offices in Asia, North America, Europe and the Middle East, in an energy tech (also cleantech and climate tech) industry that is drawing more widespread attention as awareness about climate change ramps up.
A recent major report from the United Nations’ Intergovernmental Panel on Climate Change, published in August, sounded the alarm on the devastating consequences of climate change and made clear that humans were “unequivocally” responsible for the warming of the climate, which the report said was happening faster than previously thought.
The climate crisis has been called one of the biggest challenges facing humanity, as countries and industries look to offset gas emissions by tapping subsectors such as alternative or clean energy, green construction, and smart agriculture and food production.
SolarEdge says it addresses a broad range of energy market segments with its products, such as energy storage, electric vehicle charging, batteries, electric vehicle powertrains, and grid services solutions.
Last month, the company reported record revenues of $526.4 million in the third quarter of 2021.
“When we founded the company about fifteen years ago, the one thing we cared about the most was to build an international technology-focused company with a positive impact on the world,” Handelsman said. “I think that one moment that was pivotal when I look back was our internal realization that we can do it and it is possible to build a great Israeli company. Once we were determined and convinced that we have the product, the technology, the team, and the vision, we had the state of mind that allowed us to succeed.”
The listing, he said, was further proof Israel was “truly a scale up nation, and that we are now a part of the index that includes the largest companies traded on Wall Street.”