The acquisition adds valuable fuel cell stack technology and products that Plug Power plans to integrate into several models of its GenDrive fuel cell systems with first deployments this year.
ReliOn develops modular, scalable proton exchange membrane (PEM) hydrogen fuel cell systems that feature innovative air-cooled stack designs with unique, low-cost snap-and-build stack assembly technology. The company has deployed more than 5,000 fuel cell stacks at customer sites.
Currently, Plug Power owns a large portfolio of intellectual property including more than 150 US patents related to fuel cell stack design, fuel cell system design, fuel processing, fuel dispensing, energy storage and controls. This includes patents relating to the safe dispensing of hydrogen and the use of a fuel cell system as a direct battery replacement in material handling applications. The acquisition adds 34 additional US fuel cell patents to the company’s portfolio.
Plug Power paid approximately $4m in Plug Power common stock for ReliOn’s assets and will add key ReliOn personnel, primarily in sales and engineering. The company expects the acquisition to be accretive to earnings in 2015, and to generate approximately $1m in EBITDAS loss in 2014. Including the impact of the acquisition, the company continues to expect full year 2014 EBITDAS to be positive.
This acquisition marks Plug Power’s expansion into the stationary back-up fuel cell market, where ReliOn has been successful with customers like AT&T, Sprint and Verizon.
"One of our objectives in 2014 is to expand our fuel cell stack technology holdings to enhance our customer offerings," said Andy Marsh, Plug Power president and CEO.
"The addition of this technology from ReliOn is a giant step in that direction and gives us a very high-performance and high-reliability stack. We’re looking forward to growing this business with the talented new additions to the Plug Power team."
"Plug Power has been the most aggressive company in the industry in building a profitable business," said Gary Flood, president and CEO of ReliOn. "We look forward to being part of the industry leader and adding our technology, customer base and system products to the Plug Power offering."
