Shell USA will acquire electric vehicle charging network operator, Volta Inc., in an all-cash deal valued at $169 million, Volta announced on Wednesday.
Volta will sell all its outstanding shares of Class A common stock to Shell USA for 86 cents each in cash. The deal is expected to close in H1 of the year. This move by Shell is in line with other companies such as EDF and BP, who have been investing in EV charging infrastructure to capitalize on the increasing demand for electric vehicles.
Additionally, Shell USA will provide loans to Volta to assist with the closing of the deal. This acquisition represents a shift in focus for Shell, as it expands beyond its traditional network of filling stations to reach customers.
Volta, which installs chargers with large video advertising screens at grocery stores, office buildings and elsewhere, has established more than 3,000 charging points in partnership with companies such as Kroger, Oracle Arena, and Six Flags Theme Parks.
Vince Cubbage, Interim Chief Executive Officer, said, “The shift to e-mobility is unstoppable, and Shell recognizes 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.”
Cubbage continued, “Both Volta and Shell have a demonstrated ability to meet the changing needs of customers, and this acquisition will bring that experience together to provide the options that are needed as more drivers choose electric.”