How the mighty have fallen! After a $2 billion IPO just two years ago, Volta is being acquired by Shell for less than $170 million.
Volta Industries went public through a merger with blank-check firm Tortoise Acquisition Corp II in a deal that valued the electric vehicle (EV) charging station network at over $2 billion and fetched the company $600 million in net proceeds, including a $300 million private investment from funds and accounts managed by BlackRock Inc, Fidelity Management & Research Co LLC, and Neuberger Berman Funds.
It didn’t go well — the company burned through its cash reserves at an alarming rate, and its stock price was pushed consistently lower over time. That led Seeking Alpha to write that, “a collapsed stock price will make it difficult for Volta to be able to raise cash to plug its liquidity needs” back in November.
Alas, none of that matters now. Volta is, for all intents and purposes, dead — and Shell is buying it for less than the cash it raised. You can read Shell’s official press release, below, then let us know what you think of this deal in the comments.
Volta Inc. to be Acquired by Shell USA, Inc. to Accelerate Decarbonization of the Transportation Sector
Volta Inc. (NYSE: VLTA) today announced the execution of 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 $169 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 electric vehicle (“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 $0.86 per share in cash upon completion of the merger, which represents an approximate 18 percent premium to the closing price of Volta stock on January 17, 2023, the last full trading day prior to the announcement of the transaction.
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.”
This 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.
SOURCE | IMAGES: BUSINESS WIRE.
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