Filing Flows › Ormat Technologies (ORA) › Takeover & LBO
Is Ormat Technologies (ORA) a takeover target?
A leveraged buyout at today's price plus 30% ($115.60 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.78 a share (−53% against today's $88.92).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $115.60 | today's $88.92 plus 30% |
| × shares | 62.5 million | |
| = Equity value | $7.2B | |
| + Debt refinanced | $2.8B | |
| − Cash | $147M | |
| = Enterprise value | $9.8B | 19.5× EBITDA of $506M |
| Fees | $197M | 2% of the price |
| New debt | $2.8B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $7.3B | 72% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $1.3B | $546M | $213M | −$264M | $3.0B |
| Year 2 | $1.4B | $583M | $233M | −$286M | $3.3B |
| Year 3 | $1.4B | $615M | $255M | −$309M | $3.6B |
| Year 4 | $1.5B | $641M | $278M | −$333M | $4.0B |
| Year 5 | $1.6B | $660M | $304M | −$359M | $4.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $10.7B | |
| − Debt left | $4.3B | |
| = Buyer's equity | $6.3B | |
| Money multiple | 0.87× | on $7.3B put in |
| Buyer's yearly return (IRR) | −2.7% |
Price against return
What the buyer makes at other premiums over today's $88.92; the IRR reaches 20% at $41.78 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $97.81 | 0.7% |
| 20% | $106.70 | −1.1% |
| 30% | $115.60 | −2.7% |
| 40% | $124.49 | −4.1% |
| 50% | $133.38 | −5.4% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $1.2B | |
| EBITDA, last 12 months | $506M | 42.6% of revenue |
| Depreciation and amortization | $308M | |
| Capital spending | $544M | |
| Debt | $2.8B | |
| Cash | $147M | |
| Share price | $88.92 | on Oct 9, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 12% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Ormat Technologies would cost about $117.82 a share, $7.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $106.70 | $6.7B |
| Median | 32.5% | $117.82 | $7.4B |
| High end (a quarter paid more) | 51.8% | $134.98 | $8.4B |
Ormat Technologies' latest quarter
Ormat Technologies, Q3 2026: revenue $275M (+10% year over year), operating margin 16.4%, net earnings $31.9M, operating cash flow $99.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is Ormat Technologies being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Ormat Technologies?
A leveraged buyout at today's price plus 30% ($115.60 a share) would return a loss of about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $41.78 a share (−53% against today's $88.92).
What would a takeover of Ormat Technologies cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Ormat Technologies would cost about $117.82 a share, $7.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.