- Shell is buying Volta for $169 million. These are the details.
Volta (VLTA) announced the execution of a definitive merger agreement under which Shell USA, a subsidiary of Shell plc (SHEL), will acquire Volta in an all-cash transaction valued at approximately $169 million. The deal 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 (EV) charging.
Under the terms of the merger agreement, Shell USA will acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger, which represents an approximate 18% premium to the closing price of Volta stock on January 17, 2023, the last full trading day prior to the announcement of the transaction.
This acquisition builds on the momentum in electric mobility by combining one of the leading EV charging and media companies in the U.S. with one of the world’s largest energy suppliers. And 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. Upon 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.
Volta’s Board of Directors, having determined that the transaction is in the best interests of the company’s stockholders, has unanimously approved the transaction and recommends that Volta’s stockholders approve the transaction and adopt the merger agreement at the special meeting of stockholders to be called in connection with the transaction.
The deal is expected to close in the first half of 2023. And the closing of the merger is subject to the approval of Volta’s stockholders and other customary closing conditions. Upon closing of the transaction, Volta’s Class A common stock will no longer be listed on any public market.
KEY QUOTES:
“The shift to e-mobility is unstoppable, and Shell recognizes 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.”
- Vince Cubbage, Interim Chief Executive Officer of Volta
