Shell USA Inc. has signed an agreement to acquire electric vehicle infrastructure company Volta Inc.—a deal valued at $169 million.
Key Details
- Shell has signed an agreement to take over 100% of the outstanding shares of Volta Inc., valued at $169 million.
- Shell will acquire Volta’s network of more than 3,000 EV charge points across 31 U.S. states—a pipeline plan of over 3,000 more charging stations, and the option to continue building the charging infrastructure.
- Volta has created a way to monetize the charging stations beyond the initial payment by adding screens to the chargers where businesses can advertise, giving Shell another central source of income.
Why it’s news
Shell, along with other brands, are trying to cash in on EVs as the demand for battery-powered cars continues to rise.
Many people are opting to buy EVs rather than the traditional gas-powered car, but one main obstacle holding people back from fully committing to EVs is the shortage of vehicle chargers.
By Shell taking over Volta Inc., not only is the company getting into the electric business but also acquiring thousands of EV charging stations considering America’s shortage, this could be a good move for Shell as the chargers will attract a large crowd.
Volta chargers aren’t a typical charger either, the company has built screens into the chargers so customers can watch commercials as they are charging their vehicle, bringing in yet another source of income for Shell as the company can sell advertisements on the chargers.
The deal is expected to close in the first half of the year as Shell pays $0.86 per share in all cash for the company, according to Volta.
