Ballard Power Systems has agreed to acquire key assets from US-based IdaTech, including fuel cell product lines for backup power applications, distributor and customer relationships and a license for intellectual property.
The acquisition will be funded through the issuance of $7.7m of Ballard common shares, which will be subsequently transferred to IdaTech’s principal funder, Investec, a South African specialist bank and asset management firm.
Ballard president and chief executive John Sheridan said that this deal would give the company key benefits, both financial and strategic.
"Financially, the transaction is expected to be accretive for Ballard’s revenue, EBITDA and cash flow in 2012 and beyond," Sheridan added.
"Strategically, it provides Ballard with additional product capabilities with methanol fuelled systems and key customer relationships in leading markets for fuel cell commercialisation, such as South East Asia, the Caribbean and Latin America, as well as South Africa."
The acquisition is subject to TSX approval and other closing conditions, but is expected to be finalised on 31 July.
