ECOtality Acquires eTec & Affiliated Electric Vehicle Technology

November 18, 2007 by Jeff Shepard

ECOtality, Inc. announced that it has acquired Electric Transportation Engineering Corp. (eTec) and its affiliated companies for $6.25 million in cash and stock.

Specializing in the fields of alternative-fuel, hybrid (HEV) and electric vehicles (EV) and infrastructures, eTec is described as a recognized leader in the research, development and testing of advanced transportation and energy systems. The company also developed and holds exclusive patent rights to the eTec SuperCharge™ – described as a smart fast-charging system that extends battery life without the destructive effects of overcharging. As of November 6, 2007, eTec will operate as a subsidiary of ECOtality; there will be no changes to the company’s management team.

ECOtality claims that the acquisition of eTec, combined with the previous announced acquisitions of Innergy Power Corp. and Fuel Cell Store, will provide the company a revenue base of companies having combined trailing twelve month revenues of $9.39 million as of September 30, 2007. To continue to execute the company’s strategic growth plan and to complete the eTec acquisition, ECOtality successfully raised $3.5 million of capital from institutional investors.

"The acquisition of eTec allows us to further grow financially, technologically and strategically in the areas of clean energy creation, storage and delivery," said Jonathan Read, President and CEO, ECOtality. "Through successful execution of our strategy to acquire and commercially advance revenue-generating companies and technologies such as eTec, ECOtality has become a diversified renewable energy company that will be a leader in changing the way we consume energy. With major automakers and federal agencies focused on advancing hybrid and plug-in electric vehicles, eTec’s expertise in transportation, electrical infrastructure and industrial fast-charge systems expands our presence in the consumer market."

Specifically engineered for airport ground support equipment, neighborhood electric vehicle operations, and marine and transit applications, the exclusively patented eTec SuperCharge is said to be based on advanced algorithms that allow faster charging with less heat generation and longer battery life than any other fast charge system available. According to the company, using the eTec SuperCharge, airports and airlines can convert from diesel and propane ground support equipment to clean electric systems that produce zero emissions. Currently installed in 12 major airports in North America, there are more than 300 eTec SuperCharge systems in daily operation that service more than 1,000 electric ground support equipment.

"The acquisition by ECOtality provides eTec the ability to increase our operations in the research, testing and development of alternative-fueled and electric energy systems and infrastructures," said Don Karner, President, eTec. "As one of the few players in the fast-charge battery market, we recognize the shift in the transportation industry towards more electric dominant power systems. The acquisition by ECOtality provides us the opportunity to aggressively expand the market share of the eTec SuperCharge system and explore additional markets and applications such as plug-in hybrid electric vehicles, pure electric vehicles and their respective infrastructures."