Axeon Holdings has signed a proposed merger agreement with Advanced Batteries of Dundee, Scotland. The resulting merger will bring together two U.K. companies addressing the developing market for alternative power sources for electric vehicles (EVs) and hybrid electric vehicles (HEVs).
The companies have already jointly developed a prototype battery management system for high-capacity Li-ion battery packs. A battery management system is expected to enable EVs and HEVs power sources to perform more efficiently, making alternative power competitive with traditionally fuelled vehicles.
In addition Axeon believes it will be possible to develop a Vindax-based Li-ion battery management chip that could be licensed to the automotive and handheld device market.
The acquisition will combine Axeon's Vindax semiconductor expertise with ABL's battery technology, to produce a battery management system suitable for current EV and HEV Li-ion) battery packs and next generation fuel cell Li-ion batteries.
Axeon will acquire all the issued shares of ABL for a cash consideration of £470,000 payable at completion, together with a deferred consideration of a maximum of £500,000 in cash and the issue of up to 3,252,032 Ordinary Shares. The proposed agreement also commits Axeon to provide funding to ABL to enable it to pay about £1,170,000 for the ABL business. This includes assuming about £400,000 of debt.
