Shell acquires EV charging company Volta Inc. for USD169 million
Volta Inc. has agreed to be acquired by Shell, after the industry-leading electric vehicle (EV) charging and media company, signed a definitive merger agreement under which Shell USA Inc., a subsidiary of Shell plc (NYSE: SHEL), will acquire Volta in an all-cash transaction valued at approximately USD169 million.
The transaction brings Volta’s powerful dual charging and media network to Shell’s established brand and seeks to unlock robust, long-term growth opportunities in EV charging.
Under the terms of the merger agreement, Shell USA Inc. will acquire all outstanding shares of Class A common stock of Volta at USD0.86 per share in cash upon completion of the merger, which represents an approximate 18% premium to the closing price of Volta stock on January 17, 2023, the last full trading day prior to the announcement of the transaction.
“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,” said Vince Cubbage, interim chief executive officer.
“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,” Cubbage said.
Shell’s acquisition builds on the momentum in electric mobility by combining one of the leading EV charging and media companies in the U.S. with one of the world’s largest energy suppliers. The transaction provides the opportunity to unlock Volta’s significant signed pipeline of charging stalls in construction or evaluation and capture the seismic EV charging market opportunity.
Following the completion of the transaction, there will be no immediate change in driver experience, Volta Media™ Network capabilities available to advertisers, or services provided to commercial properties and retail locations.
As part of the agreement, an affiliate of Shell will provide subordinated secured term loans to Volta to bridge Volta through the closing of the transaction.