ECOtality announced this morning that it has acquired Electric Transportation Engineering Corporation (eTec) and its affiliated companies for $6.25 million in cash and stock. eTec is a recognized leader in the research, development and testing of advanced transportation and energy systems, specializing in alternative-fuel, hybrid and electric vehicles. eTec has developed and obtained exclusive patent rights to a rapid charging system that extends battery life without destructive effects. There are more than 300 eTec SuperCharge systems in daily operation that service more than 1,000 electric ground support equipment.
The acquisition, combined with the acquisitions of Innergy Power Corporation and Fuel Cell Store, will provide ECOtality with a revenue base of companies that together have a yearly revenue of $9.39 million. To continue executing the company’s strategic growth plan and to complete the eTec acquisition, ECOtality has successfully raised $3.5 million of capital from institutional investors.
Jonathan Read, President and CEO of ECOtality, stated, “The acquisition of eTec allows us to further grow financially, technologically and strategically in the areas of clean energy creation, storage and delivery. Through successful execution of our strategy to acquire and commercially advance revenue-generating companies and technologies such as eTec, ECOtality has become a diversified renewable energy company that will be a leader in changing the way we consume energy. With major automakers and federal agencies focused on advancing hybrid and plug-in electric vehicles, eTec’s expertise in transportation, electrical infrastructure and industrial fast-charge systems expands our presence in the consumer market.”
Don Karner, President of eTec, commented, “The acquisition by ECOtality provides eTec the ability to increase our operations in the research, testing and development of alternative-fueled and electric energy systems and infrastructures. As one of the few players in the fast-charge battery market, we recognize the shift in the transportation industry towards more electric dominant power systems. The acquisition by ECOtality provides us the opportunity to aggressively expand the market share of the eTec SuperCharge system and explore additional markets and applications such as plug-in hybrid electric vehicles, pure electric vehicles and their respective infrastructures.”
Mentioned benefits of the eTec acquisition include:
• eTec, which has existing contracts with public and private entities through 2009 worth approximately $11.5 million, will provide significant revenues for ECOtality.
• eTec’s experience in developing hydrogen powered vehicles and refueling systems provides tremendous synergies that will benefit the development of Hydrality – an on-demand hydrogen production and storage technology.
• eTec, which designed, manufactured and installed public, commercial and residential recharging systems for the GM EV-1, Chrysler EPIC, and Ford Ranger electric vehicle programs, will position ECOtality as a leader in electric and hybrid electric vehicles and infrastructure.
• According to Frost & Sullivan, the HEV and EV battery market is expected to grow at a compound annual growth rate (CAGR) of 14.8 percent from 2006 to 2013. The market grew 25.9 percent from 2005-2006.
• eTec’s contacts and relationships with major automotive manufacturers, international government agencies and leading research institutes provide a direct link to market trends, emerging technologies, new products and technologies and additional research and funding opportunities.
• eTec will assist in identifying new applications and expanding ECOtality’s subsidiary Innergy Power Corporation’s ThinLine battery products.
• With access to ECOtality’s manufacturing facility in Tijuana, Mexico, eTec can explore increasing the development and manufacturing of eTec SuperCharge components and systems.
• eTec will provide ECOtality with resources for expansion and integration of energy solutions and applications for solar, hydrogen and electric systems.
• eTec creates an immediate leadership role for ECOtality in battery and charging industries.
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