Ballard Power Systems has acquired Arcola Energy, a UK-based systems engineering company specializing in hydrogen fuel cell powertrain and vehicle systems integration. (Earlier post.) Ballard acquired 100% of Arcola for total upfront and earn-out cash and share consideration of up to US$40 million, based on the achievement of certain performance milestones.

With more than 10 years of experience integrating Ballard fuel cell systems into powertrains and heavy-duty vehicles, including buses, refuse trucks and trains, Arcola currently has approximately 90 employees based in the UK. Arcola is one of the fastest-growing hydrogen companies in the UK.

We continue to focus on simplifying the fuel cell electric vehicle (FCEV) experience and ease implementation friction points for OEM customers and end-users. We are putting the customer at the heart of our strategy and investments. With the acquisition of Arcola, we will make it easier for existing and new OEM customers globally to offer FCEVs by providing stronger support for the integration of our fuel cell engines into their vehicle platforms, including powertrain integration, vehicle integration and application engineering.

—Randy MacEwen, Ballard President and CEO

Ballard acquired Arcola for total consideration of up to US$40 million, including 337,353 Ballard shares (with a current approximate value of US$6 million) that vest over two years, and up to US$34 million in upfront and earn-out cash consideration based on the achievement of certain performance conditions over a two-year period.

National Bank Financial acted as financial advisors to Ballard for the purposes of this transaction.