The first solar inventory increases under a deal with European solar technology company Evolar

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First Solar

Shares rose sharply on Friday as the company disclosed a deal it said would strengthen its technology position in solar energy.

First Solar (ticker: FSLR) announced that it would buy Evolar AB, a European thin film company, in a deal with a purchase price of approximately $38 million paid at closing. The prize could include up to an additional $42 million if particular technical milestones are achieved.

“With this acquisition, along with our new innovation center in the United States and our longstanding commitment to R&D, we are investing not only in the future of First Solar, but also in the future of solar energy” , First Solar CEO Mark Widmar said in a press release.

Shares of First Solar gained 17% to $214.29 on Friday.

Write to Emily Dattilo at emily.dattilo@dowjones.com