Hydrogenics Corporation, a designer and manufacturer of fuel cell technology, has acquired Greenlight Power Technologies, its principal competitor in the fuel cell test business, for approximately $19 million.
Under the terms of the transaction, Greenlight shareholders will receive cash consideration of approximately $2.25 million and 4,328,018 Hydrogenics’ common shares, representing approximately 8% of Hydrogenics outstanding common shares.
As part of the merger, Hydrogenics intends to combine the respective fuel cell test businesses of Hydrogenics and Greenlight and to operate the combined business through Greenlight as the test equipment and services division of Hydrogenics.
The consolidation of the companies’ test businesses will be led by Greenlight’s CEO, David Chapman, who will manage the division, based in Burnaby, British Columbia.
‘I believe the combination of our respective resources will create the most sophisticated and successful fuel cell testing and diagnostic enterprise in the world, with a client list that includes almost every major fuel cell company in North America, Europe and Asia,’ said Mr. Chapman. ‘We are very excited to have this opportunity to be an integral part of Hydrogenics’ strategic growth plans.’