Ballard Power Systems (BLDP -1.1%) has a definitive deal to sell some of its methanol Telecom Backup Power assets to Taiwan's Chung-Hsin Electric & Machinery Manufacturing, for up to $6.1M.
The company has been a partner of Ballard's since 2012.
With the addition of these assets, we believe CHEM will be well positioned to become the leading provider of methanol backup power systems to the telecom industry," says Ballard CEO Randy MacEwen. "And, with a stack supply relationship with CHEM, Ballard will continue to enjoy exposure to this intriguing vertical.
The deal includes an up-front payment of $3M and up to $3.1M in earn-out depending on sales objectives. It also includes an agreement that CHEM will buy fuel cell stacks exclusively from Ballard (at least $2M worth) during the earn-out period.