Ballard buys fuel cell power back up assets from IdaTech
Jul 26, 2012 - Canadian fuel cell maker Ballard Power Systems (TSE:BLD) said Thursday that it had signed a deal to buy certain assets from backup power solutions provider IdaTech.
Ballard plans to fund the acquisition by issuing USD 7.7 million (EUR 6.3m) worth of common shares priced at USD 1.08 apiece to IdaTech. Subsequently, the shares will be transferred to IdaTech's main shareholder, South African financial services group Investec (LON:INVP).
The transaction is still subject to approval by the Toronto Stock Exchange and is expected to be completed by the end of July. Ballard said that the assets were seen to start bringing revenue and cash flow as early as 2012.
The assets to be bought by Ballard include IdaTech's fuel cell product lines used in backup power applications, distributor and customer relationships, as well as intellectual property.
As part of the deal, Investec has agreed to hold most of the Ballard shares for a minimum period of 12 months in a move that confirms its continuous support for fuel cell technology.