Ballard acquires power management product developer Protonex
Deal is worth $30 million; expected to close in Q3.
VANCOUVER, BC — Ballard Power Systems has acquired Protonex Technology Corp., a manufacturer of advanced power management products and portable fuel cell solutions, in a deal worth $30 million.
Vancouver-based Ballard will assume and pay Protonex’s debt obligations at closing, estimated at $4.4 million, and will pay pay the balance of approximately $25.6 million through the issuance of 11.2 million Ballard shares.
The number of Ballard shares to be issued is subject to adjustment based on the final debt obligations at closing.
Founded in 2000, Protonex is headquartered in Southborough, Mass. and currently has 53 employees and approximately 85 patents issued and pending in power management solutions, proton exchange membrane (PEM) fuel cells, solid oxide fuel cells (SOFC), and fuel reformer technology that generate clean energy for fuels such as propane, natural gas or diesel.
In 2014, Protonex generated revenue of $13.8 million with 40% gross margin and positive Adjusted EBITDA.
Ballard says the deal adds power management capabilities along with small-scale portable products to its Power Products portfolio, which will enable it to link fuel cell, solar and storage technologies to deliver clean energy simply and efficiently.
The transaction also provides Ballard with exposure to military applications.
Ballard says it expects to retain Protonex’s employee base and leadership team.
The transaction is expected to close in the third quarter of 2015, subject to Protonex shareholder approval, regulatory approvals and customary closing conditions.
Ballard Power Systems is a manufacturer of clean energy fuel cell products.