Schneider Electric said Monday it has agreed to buy Xantrex Technology, which makes inverters for solar- and wind-power systems, for about C$500 million ($489 million) in cash.

The amount includes the net proceeds Xantrex is expected to make from selling its programmable power business, according to Schneider Electric. Schneider Electric would pay C$415 million ($412 million) for Xantrex. 

Schneider Electric, based in Rueil-Malmaison, France, plans to pay C$15.00 ($14.66) for each Xantrex share. The deal, which is subject to court, government and shareholders’ approval, is expected to close by the end of October.

Xantrex, based in Vancouver, is one of the world’s largest makers of power-conversion devices for the solar and wind markets. The company has announced several contracts in recent months, including a $5 million deal with SunEdison in Beltsville, M.D. for its inverters, which convert the direct current generated by solar panels into usable alternating current. In January, Xantrex announced a C$25 million ($24.44 million) order to sell converters to an undisclosed wind-turbine maker in North America.

Xantrex, founded in 1983, also makes battery monitors and chargers for cars and boats, as well as backup power systems.

The part of the business that makes the backup power systems, called the programmable-power unit, will not be included in the Schneider Electric purchase. The Canadian firm said Monday it would instead sell the business to Ametek (NYSE: AME) in Paoli, Penn.for C$120 million ($117.42 million) in cash. The sale is expected to close during this quarter.

Xantrex shares grew 8.77 percent Monday to reach C$14.64 ($14.31) per share on the Toronto Stock Exchange.

The acquisition gives Schneider Electric access to a new market. The company, which is traded on the Euronext under the ticker symbol “SCHN,” generated 17.3 billion ($27.23 billion) in 2007. It employs about 120,000 people in 102 countries.

Xantrex has operations in the United States, Germany, Spain and England, as well as a joint venture in China. The company reported $234 million in sales last year. It employs about 800 people.

Ametek brought in $2.14 billion in sales last year and now employs about 11,000 people. The company’s shares dipped 1.19 percent to close at $48.30 per share.

The growth of the solar and wind power markets has sparked new inverter technologies from

Enphase Energy in Petaluma, Calif. for example, launched its first inverter product last month (see Enphase Energy Seeks New Converts).