Oil titan Shell has acquired EV charging and media firm Volta for $169 million as the automotive industry shifts to battery-powered cars.
On Wednesday, Jan. 18, Volta announced that a subsidiary of Shell would acquire the electric vehicle (EV) charging network operator in an all-cash transaction valued at roughly $169 million, Electrek reported.
Shell’s Volta Buyout
Volta has entered into a final merger agreement with Shell USA, according to a news statement issued today on Wednesday.
Volta is an EV charging and media firm headquartered out of San Francisco. Its Level 2 charging stations may be found in places like supermarkets, shopping centers, banks, and other commercial and retail establishments.
Volta’s Interim CEO Vince Cubbage said the deal would benefit shareholders and put the firm on a solid footing for the future.
Cubbage said that Shell acknowledges that Volta’s market-leading dual charging and media approach provides a public charging option that is cost-effective, dependable, and easily accessible, making the transition to e-mobility inevitable.
Although the potential for growth in the EV infrastructure sector is substantial, Volta’s ability to seize this opportunity on its own was constrained by competitive market circumstances and ongoing funding shortages.
“This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward,” Cubbage added.
Increased adoption of zero-emission electric cars is bolstered by a major oil firm like Shell purchasing a prominent EV charging provider.
Shell will provide Volta financing to see them through the deal’s final stages. Moreover, Shell USA will purchase all outstanding Volta Class A common stock shares for $0.86 per share in cash.
Shift to Battery-powered Cars
The future of the car industry becomes clearer thanks to the commitment of more manufacturers and countries to electrify vehicles completely. In the midst of this, oil firms are taking steps to secure their continued relevance.
In 2022, electric cars made up 10% of worldwide vehicle sales, a key milestone as the industry aimed to increase EV manufacturing.
Major oil companies like Shell have been investing heavily in EV charging infrastructure and diversifying away from gas sales via a series of acquisitions and other investments over the last several years.
When the oil firm purchased New Motion in 2017, it gained instantaneous access to 30,000 EV charging stations throughout Europe.
Since then, Shell has made a number of fresh investments and acquisitions and has formed partnerships with notable companies like Nio and BYD in order to further its network expansion plans.
Shell has installed and operated around 90,000 EV charging points in private residences, commercial establishments, and Shell-branded places, with a further 300,000 stations accessible through roaming networks.
As part of its plan to adapt to the arrival of the zero-emission electric car era, Shell intends to have more than 500,000 EV charging connections operational by 2025.
With this most recent purchase, the business has taken a significant step toward its ultimate objective.