It has been announced that Shell will acquire Volta Inc., an industry-leading electric vehicle (EV) charging and media company. This will be an all-cash transaction valued at approximately $169 million. The transaction brings Volta’s powerful dual charging and media network to Shell’s established brand and seeks to unlock robust, long-term growth opportunities in electric vehicle charging.
Under the terms of the merger agreement, Shell USA Inc. will acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger. This represents an approximate 18 per cent premium to the closing price of Volta stock on January 17, 2023, the last full trading before the announcement of the transaction.
Vince Cubbage, Volta interim CEO, said, “The shift to emobility is unstoppable, and Shell recognises Volta’s industry-leading dual charging and media model delivers a public charging offering that is affordable, reliable and accessible.
“While the EV infrastructure market opportunity is potentially enormous, 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.”
“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.”
This acquisition builds on the momentum in electric mobility by combining one of the leading EV charging and media companies in the US with one of the world’s largest energy suppliers. The transaction provides the opportunity to unlock Volta’s significant signed pipeline of charging stalls in construction or evaluation and capture the seismic EV charging market opportunity.
Following the completion of the transaction, there will be no immediate change in driver experience, Volta Media Network capabilities available to advertisers, or services provided to commercial properties and retail locations. As part of the agreement, an affiliate of Shell will provide subordinated secured term loans to Volta to bridge Volta through the closing of the transaction.
Shell is moving into the world of electric vehicle charging in a big way. In September 2022, the company announced it plans to install over 10,000 electric vehicle (EV) charging points across India by 2030. In the first phase of its launch, Shell plans to set up charging stations in Bengaluru across its fuel stations located in Yeshwantpur, Marathalli, Old Madras Road, Brookefield and Kanakpura
