Shell USA has agreed to acquire US-based electric vehicle (EV) charging company Volta in an all-cash deal worth about $169m.
Under the terms of the agreement, Shell USA will pay $0.86 per share in cash to acquire all Class A common stock shares of Volta.
The offer price represents about an 18% premium to the closing price of Volta stock on 17 January 2023, stated Volta.
Through the acquisition, Shell expects to open up long-term growth opportunities in EV charging with Volta’s dual charging and media network.
The transaction is anticipated to support Shell to explore Volta’s signed pipeline of charging stalls in construction or evaluation and seize the seismic EV charging market opportunity.
Volta offers value to site hosts, brands, and consumers by deploying charging stations with large-format digital advertising screens located nearby the entrances of popular commercial locations.
Volta interim CEO Vince Cubbage said: “The shift to e-mobility is unstoppable, and Shell recognises Volta’s industry-leading dual charging and media model delivers a public charging offering that is affordable, reliable, and accessible.
“While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited.
“This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward.”
Upon the completion of the deal, an immediate change in Volta Media network capabilities available to advertisers, driver experience, or services provided to commercial properties and retail locations is not expected.
Under the agreement, Shell affiliate will lend subordinated secured term loans to Volta to help the latter get through the closing of the deal.
The transaction, subject to Volta’s stockholders’ approval and other conditions, is anticipated to complete in the first half of 2023.
