ECOtality, Inc. is acquiring all assets and business of Minit-Charger, a subsidiary of Edison International, for $3 million in cash and stock. The acquisition of Minit-Charger, combined with the previous announced acquisitions of Electric Transportation Engineering Corporation (eTec), Innergy Power Corporation and Fuel Cell Store, will provide ECOtality a revenue base of companies having combined trailing twelve month revenues of $14.55 million for the period ending third quarter of 2007.
ECOtality expects to close the acquisition within the next seven days.
Since its inception in 1998, Minit-Charger has generated more than $40 million product sales and earned $5.16 million in revenues for the trailing twelve month period ending September 30, 2007. According to Frost & Sullivan, the North American industrial fast battery charger market revenues grew 16% from 2005 to 2006, and are expected to grow 17% from 2006 to 2007.
The compound annual growth rate (CAGR) of the fast charger market is expected to reach 18.9 percent from 2006 to 2013. To continue to execute the company’s strategic growth plan and to complete the Minit-Charger acquisition, ECOtality successfully raised $1.5 million of capital from institutional investors.
The acquisition of Minit-Charger, as well as our previous acquisition of eTec, exemplifies ECOtality’s strategy to acquire and advance revenue-generating companies with accretive technologies that reduce the environmental impacts of transportation and energy production. With the increased attention and growth in the electric vehicle market, we are committed to the commercial development of fast charging and clean electric propulsion systems and will explore additional transportation applications for the Minit-Charger and eTec Supercharge technologies.—Jonathan Read, president and CEO, ECOtality
eTec, a subsidiary of ECOtality, will manage all aspects of the Minit-Charger business after the acquisition. By combining the Minit-Charger line of battery fast chargers for lift trucks and material handling systems with the eTec SuperCharge line of battery fast chargers for airport ground support equipment, eTec will expand the company’s fast charging product line and market share in the area of clean electric transportation and infrastructure solutions. Currently, the eTec SuperCharge technology provides battery fast charging systems used in airport ground support equipment, neighborhood electric vehicle operations, and marine and transit applications.