Azure Dynamics to Acquire Solectria to Create Broader Hybrid Capability

17 December 2004

Azure Dynamics, a Canadian provider of hybrid electric powertrains for commercial vehicles, is acquiring US-based Solectria  Corporation in an all-stock deal worth approximately $18 million (US).  Azure Dynamics is the integrator providing series hybrid vans to Purolator (earlier post). Solectria supplies hybrid electric powertrains and components to the US military and builds parallel hybrid electric systems for commercial customers such as DHL and the USPS.

Earlier this year, Azure had noted (earlier post) that it was exploring different mechanisms for adding a parallel hybrid powertrain to its lineup—with Solectria, it now has that product.

The resulting company will have a broader product portfolio, spanning vehicle categories (light, medium and heavy) and hybrid powertrain architectures (serial and parallel).

For the nine months ending 30 Sep 2004, Azure, a development stage company, lost US$4.5 million on revenue of some US$1.6 million in revenue and contributions. That’s an increase in loss from $2.2 million for the comparable period last year due, according to Azure, to increased activity in product development and sales. Azure has assets of US$10 million, including US$7.3 million in cash and cash equivalents.

For the year ended 30 Sep 04, Solectria earned third party revenues of US$5.1 million, related party revenues of US$0.4 million, incurred a net loss of US$1.8 million, and had net assets of US$1.6 million.