Sensata Acquires Spear Power
Sensor firm Sensata Technologies is furthering its battery market expansion with the acquisition of Spear Power Systems, a lithium-ion energy storage solutions provider.
Massachusetts-based sensor firm Sensata Technologies recently announced its acquisition of Spear Power Systems, a lithium-ion energy storage provider. The move is aimed at boosting its electrification portfolio while the company pursues more high-growth markets.
Image courtesy of Sensata Technologies, via Twitter
About 40 Spear Power Systems engineers will be added to Sensata’s team through the deal, which is slated to close in the fourth quarter of this year. Financial terms were not disclosed.
Spear Power Systems provides advanced energy storage systems targeting the defense, aerospace, and industrial markets. Founded in 2013, the Missouri-headquartered company has raised over $14 million from several prominent investors, including the venture capital arms of industry giants like Chevron, ABB, and Nabtesco Technology Ventures.
Jeff Kostos, Spear Power Systems’ co-founder and CEO, stated in the announcement that the deal will help his company to expand “development, commercial, and operational activities at a pace to meet the rapidly growing need for clean energy solutions.”
Vineet Nargolwala, executive vice president of sensing solutions at Sensata, also stated, “Spear Power Systems enables us to deliver more comprehensive energy storage solutions to help enable the electrification and replacement of combustion applications in support of OEM customers in diverse end-markets.”
The acquisition brings a more diversified portfolio for Sensata, which provides sensors, controllers and software, inverters and chargers, battery management systems, and other high-demand products for automotive, industrial, and aerospace applications. Underpinning the deal is a broader shift in Sensata’s business strategy, focusing on the emerging fields of electrification and smart and connected solutions.
Earlier this year, the company acquired vehicle safety firm PRECO Electronics and battery management systems (BMS) provider Lithium Balance. At a recent trade show, Sensata unveiled a new BMS product from its Lithium Balance acquisition that’s designed for two- and three-wheel vehicles, automated guided vehicles, robotics, and other applications.
Thanks to increased customer demand, Sensata’s business has largely recovered from the pandemic. In its second-quarter 2021 earnings report, the company posted a record $992.7 million in revenue, up 72.2% from the second quarter of last year. Its automotive segment accounted for about half of its quarterly revenue, followed by heavy vehicle and off-road sales (22.5% of total revenue), industrial (10.6%), appliance and heating, ventilation and air conditioning (6.4%), aerospace (3.3%) and all other products (3.8%).