AMSC Accelerates toward Profitability with the Acquisition of Northeast Power Systems, Inc.
AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability of our Navy’s fleet, today announced that it has acquired Northeast Power Systems, Inc. (NEPSI), a private company based in upstate New York that supplies medium voltage metal-enclosed capacitor banks, harmonic filters, fast switching reactive power solutions and surge protection products, and has paid $26 million in cash and additionally the sellers have received 873,657 restricted shares of AMSC common stock.
The acquisition of NEPSI directly aligns with AMSC’s strategic priorities to accelerate profitable growth independent of its wind business, broaden its product offerings and expand both market reach and market share. NEPSI has a long history of profitable revenue with a three-year average of approximately $25 million of revenue per year, and operating margins approaching 20 percent. By leveraging NEPSI’s leadership position in the static voltage management market for industrial applications, AMSC expects to expand its grid business offerings and deliver greater value to existing and new customers, business partners and shareholders.
“NEPSI has established a leadership position in the industrial market for power electronics that complements our recent push into the industrial market,” said Daniel P. McGahn, Chairman, President and CEO of AMSC. “The addition of NEPSI to AMSC’s Grid solutions is expected to accelerate our ability to achieve our goal of profitability and expand our offering of proprietary power electronics products in the industrial sector.”
As part of the transaction, in the future the selling shareholders may receive additional restricted shares of AMSC Common Stock upon the achievement of certain specified revenue objectives. For more information about the stock purchase agreement, please refer to AMSC’s Form 8-K filed with the SEC today.