In a move that marks the latest example of energy companies investing in electric vehicle (EV) charging infrastructure, Shell’s U.S.-based subsidiary is purchasing EV charging network operator Volta for $169 million. The acquisition agreement calls for Shell USA Inc. to acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger.
The Deal
Under the terms of the deal, Volta shareholders will receive a premium of approximately 18% compared to the closing price of Volta’s stock on January 17, 2023. The acquisition is valued at $169 million and is expected to close in the first half of 2023.
Volta’s Business Model
Volta has an advertising-based business model, where it places its chargers at shopping malls and grocery stores. EV drivers can power up their batteries for free while Volta earns revenue through advertising on large media displays located near the charging stations. These displays allow retailers and consumer goods companies to reach a targeted audience of EV owners.
Financials
Prior to taking the special purpose acquisition company (SPAC) route in 2021, Volta raised over $200 million from investors. However, its stock price has languished since then, and its cash position is depleted. As a result, under the acquisition agreement, Shell’s affiliate will provide loans to Volta to help the company navigate the closing process.
Volta’s Interim CEO Reacts
Vince Cubbage, interim CEO of Volta, expressed his thoughts on the deal: "Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward."
Industry Trend
The acquisition marks the latest example of energy companies investing in EV charging infrastructure as demand for electric vehicles continues to grow. Other notable players in this space include BP, Total, and France’s EDF, all of which have either invested or acquired EV charging assets.
Previous Investment by Shell
This deal is not Shell’s first foray into EV charging infrastructure. The company previously purchased European charging network ubitricity.
Topics Covered
- Charging stations
- Mergers and acquisitions
- Shell
- Transportation
- Volta
- Volta Charging
Author Bio
Kirsten Korosec is a reporter and editor who has covered the future of transportation for over a decade. She currently serves as the transportation editor at TechCrunch and co-hosts TechCrunch’s Equity podcast.