NiZn Battery System Maker Millennium Power Acquired for $14.5 Million
Blue Earth, Inc. has acquired Millennium Power Solutions, LLC (MPS) for $14.5 million. The purchase price is being paid through the issuance of 3,694,811 shares, valued at $ 10.9 million and $3.57 million to be paid as an earn-out fee based upon MPS quarterly profits. The number of future shares to be issued shall be calculated as 10% of the net quarterly profit of the MPS business unit divided by the ten-day average closing price of BBLU shares at the end of each quarter up to a maximum of $3.57 million in share value.
The initial, patent pending, intelligent Battery Backup System designed and manufactured by MPS was created for signalized intersections when loss of utility power occurs. The UltraPower Stealth Battery Backup System (UPStealthâ„¢ ) can be formed in various configurations that allow the intelligent battery to bend around corners and fit into spaces that cannot be accessed by traditional battery backup systems. Compared to the lead acid batteries that the UPStealthâ„¢ replaces, the UPStealthâ„¢ cost of ownership is less, requires less maintenance, last several years longer and MPS offers a finance program, which allows municipalities to replace systems without capital expenditures.
Dr. Johnny Thomas, CEO of Blue Earth, notes that "The innovation and intelligence of the products designed and created by MPS will accelerate introduction of all Blue Earth services to new market sectors such as municipalities/public sector buildings. UPStealthâ„¢ provides a proprietary back up storage system technology platform that will allow Blue Earth to develop a strong presence in the very large demand response management market sector by combining with the recently announced proprietary PeakPowerâ„¢ system for peak-shifting applications for the growing smart grid. We are very excited to complete the acquisition of MPS."
John Abraham, Contra Costa County, California, Lead Electrician-Traffic Signal, stated: "The UPStealthâ„¢ is superior to current battery backup systems in many ways relative to life of product, intelligent diagnostic features, weight, form factor and is more price competitive in terms of maintenance and installation requirements."
Tim Hysell, CEO of MPS, notes that "we are pleased to be part of the Blue Earth team since it will enable us to create, proprietary, intelligent digital rechargeable batteries for a large number of market verticals at an accelerated pace. Our ability to create intelligent batteries with endless shapes, sizes and performance levels offers significant advancements to the sustainable energy industry."
MPS obtains the batteries from PowerGenix Corp., which has developed and patented a high-power, low-cost Nickel-Zinc (NiZn) battery. Dr. Jeff Phillips, CTO of PowerGenix, notes that "the innovation and intelligence that MPS has brought to market utilizing the NiZn chemistry is truly unique and innovative. The intelligent Battery Management Software and form factors designed by MPS significantly enhances the performance of the NiZn chemistry and PowerGenix is enthusiastic to support MPS."
