VivoPower (NASDAQ:VVPR) is leading electric vehicle (EV) news on Friday following an announcement that it’s acquiring a massive stake in EV company Tembo.
A VivoPower news release reveals that the company plans to acquire a 51% stake in Tembo. It will be spending a total of $4.7 million to acquire its stake in the company. The deal also grants it the right to purchase the remaining 49% stake in the future.
VivoPower is interested in Tembo due to its EV offerings. The company sells light, rugged battery-powered vehicles for use in off-road situations. That meshes well with VVPR’s own EV and battery efforts.
The VivoPower news release notes that the EV company generated $2.3 million in revenue for 2019. There’s room for growth as Tembo has yet to expand its business to many major markets, such as the U.S., Asia or South America.
Frank Daams, the founder and CEO of Tembo, said this about the EV news.
“VivoPower’s investment will allow Tembo to build additional capacity to meet pent up demand from our customers and improve efficiencies of scale. Given that the Tembo and VivoPower teams have already started working together on customer-initiated requests for proposals, we believe that this will translate into a growing order book.”
VivoPower and Tembo still need to complete certain conditions before the deal can close. That includes determining the capital structure and providing funding mix requirements. The companies don’t provide a timeline for when they expect the deal to reach completion.
VVPR stock was up 51.9% as of Friday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
