Active Power has completed the sale of its business to Piller Power Systems, Inc. pursuant to the Asset Purchase Agreement (APA) announced Sept. 30, 2016. The deal was approved at a special meeting of stockholders on Nov. 16, 2016. At the same time, Active Power announced it is changing its name to P10 Industries, Inc.
With its installed base of more than 5,000 kinetic energy storage units worldwide, Active Power complements Piller's business perfectly. Piller is the leading producer of large rotary uninterruptible power supply (UPS) systems and its own Power Bridge product is for higher capacity applications. Piller is now extremely well positioned in a global kinetic energy UPS market that is forecast to grow annually at nearly 9 percent between 2015 and 2024.
With the disposition now complete, P10 seeks to maximize long-term stockholder value through the monetization of non-core intellectual property assets not purchased by Piller and acquiring well managed, profitable businesses. The company's patent portfolio includes innovative thermal and compressed air storage technology, which can and has been used in critical backup power applications, for example.
"We are very pleased to have completed this acquisition," said Piller Group Managing Director - Global Businesses, Andrew Dyke. "The synergies between the two companies are clear and the products complementary, providing a solid platform from which to strengthen and grow Piller's position in the critical power sector by combining the talents, products and services of both organisations."
"The closing of this deal is a significant milestone," said Mark A. Ascolese, who is continuing as president and CEO of the newly named company P10 Industries, Inc. "The financial strength and long-term approach of Langley Holdings PLC, Piller's parent company, will serve as a significant enhancement to the ongoing Active Power business and I am confident will have a stabilizing and positive effect on it. The Active Power board firmly believes the sale of the business was the best alternative available, not only for stockholders, but also for customers, employees, vendors and other stakeholders."
"With completion of the sale to Langley behind us, we will focus on monetizing our non-core patents and acquiring and operating profitable businesses. We are aiming to raise additional capital to support our ongoing working capital needs and acquisition strategy by the end of 2016. This capital should enable us to strengthen our balance sheet, aggressively market and generate value from our patents and begin acquiring well managed businesses, ultimately leading to greater shareholder value," Ascolese concluded.
