Canadian firm Ballard Power Systems has signed a deal to buy fellow proton exchange membrane (PEM) fuel cell maker Protonex Technology Corporation.
US company Protonex Technology is a private company that designs and manufactures solid oxide fuel cells (SOFC) as well as PEM fuel cells.
The deal is expected to close in the third quarter of 2015, subject to Protonex shareholder approval, regulatory approvals and customary closing conditions.
Ballard has said it expects Protonex’s employee base and leadership team to remain intact, including its president Dr. Paul Osenar.
Based in Southborough, MA, Protonex currently has 85 issued and pending patents in PEM fuel cells.
As consideration for the transaction, valued at $30 million, Ballard will pay Protonex’s debt obligations of around $4.4 million, and pay the balance through Ballard shares.
The transaction will provide diversification in terms of power management capabilities and exposure to military applications.