Acquisition includes fuel cell product lines for backup power applications, according to company
Vancouver—Ballard Power Systems has signed an agreement to acquire IdaTech’s fuel cell product lines for backup power applications, distributor and customer relationships, as well as a license to intellectual property.
The cost of the acquisition is approximately $7.7-million, payed through the issue of Ballard common shares, at a price of $1.08 per share, according to the company.
Ballard has worked closely with IdaTech over the past several years, supplying fuel cell stacks for its systems, as IdaTech has developed markets, built key customer relationships and proven the commercial robustness of its direct hydrogen and methanol-fueled products.
IdaTech’s methanol fueled product line has proven its strong value proposition to customers such as AXIS in Indonesia, Telcel in Mexico and Vodacom in South Africa.
These markets, which require frequent and extended run time backup power, have seen a strong preference by IdaTech’s customers for deployments of methanol fuel cell systems to replace traditional diesel generators.
“This transaction gives Ballard key benefits immediately, both financial and strategic,” Ballard president and CEO John Sheridan said in a release.
South Africa is a market of special interest for fuel cell commercialization, according to Ballard.
The company said it has already delivered fuel cell systems to Anglo American Platinum, Ltd., for demonstration in large scale backup power and mining locomotive applications.
In addition, Ballard is working with Anglo American on development of a fuel cell home generator.
The transaction is expected to close at the end of the month, subject to TSX approval and other closing conditions.