EnerNow Announces Plans to Acquire Battery Business

May 08, 2002 by Jeff Shepard

EnerNow Inc. (Boca Raton, FL) has agreed in principle to acquire the battery business of its parent company, Ener1 Holdings Inc. (Fort Lauderdale, FL). Ener1 Holdings also has agreed in principle to make an additional investment of up to $2.0 million in EnerNow, depending upon its working capital needs. The investment is not contingent on the completion of the battery company acquisition. In connection with the transactions, Ener1 Holdings plans to provide the battery company with funding of $4.7 million for the development of its battery-related business.

EnerNow will change its name to Ener1 Inc. (Boca Raton, FL), and will be comprised of two divisions: the Digital Media Technologies Division and the Energy Division. The acquisition will be based on a preliminary valuation of $60.0 million, and the $6.7 million in additional equity is intended for both the existing digital media technologies and emerging battery businesses.

"The battery side of our planned new Energy Division will continue to develop and market products based on its highly advanced and proprietary lithium-metal and lithium-ion technologies," said Larry Light, acting president and CEO of Ener1. "We believe that this is a strategic advantage that will rapidly launch Ener1 to world-class status in the battery industry."