Volta Inc. said on Wednesday that a Shell Plc subsidiary would take over the electric vehicle charging network operator in an all-cash deal valued at about $169 million.
Shell USA Inc will acquire all outstanding shares of Class A common stock of Volta for 86 cents apiece in cash in a deal that is expected to close in the first half of the year, Volta said.
Shell and other companies such as France’s EDF and Norway’s Statkraft have been investing in EV charging infrastructure to cash in on the growing demand for electric vehicles.
The announcement follows other investments in the EV charging infrastructure space, including Mercedes-Benz, which is poised to invest billions of dollars to build 10,000 fast-charging points in North America, Europe and China by 2030.
As part of the deal, Shell USA will also provide loans to Volta to help the company through the closing of the deal.
The acquisition of Volta — which installs chargers with large video advertising screens at grocery stores, office buildings and elsewhere — is emblematic of an accelerating shift in focus for a company that has relied on a vast network of traditional filling stations to reach customers.
Tough year
Volta, which went public in 2021 through a merger with a special purpose acquisition company, has struggled in the past year, with its two top executives abruptly exiting last March. The firm issued a going-concern warning in May as cash reserves dwindled and fired more than half its workforce to stabilize its finances.
Volta is one of several clean-technology startups including Eos Energy Enerterprises Inc., EVgo and Sunlight Financial Holdings Inc. that went public via SPAC deals in recent years, only to see their shares tumble as investors soured on their products or business models.
The acquisition is part of Shell’s efforts to prepare for a world in which oil consumption ebbs as more industries electrify and people ditch combustion-engine cars. Volta has set up more than 3,000 charging points with partners including supermarket Kroger Co., the Oracle Arena in San Francisco and Six Flags Theme Parks Inc.
“Both Volta and Shell have a demonstrated ability to meet the changing needs of customers, and this acquisition will bring that experience together to provide the options that are needed as more drivers choose electric,” Vince Cubbage, Volta’s interim CEO, said in a statement.
Reuters and Bloomberg contributed to this report.