Parent Of Retail Supplier To Acquire EV Charging Network

Volta Inc. today announced the execution of a definitive agreement under which Shell USA Inc., a subsidiary of Shell plc, will acquire Volta in an all-cash transaction valued at approximately $169 million.

Volta offers what it terms a "dual [EV] charging and media network" under which Volta operates a network of charging stations that feature large-format digital advertising screens, "located steps away from the entrances of popular commercial locations."

According to Volta's website, as of Q3 2022, it offers 3,093 charging stalls in 31 U.S. states and territories, with ~112,000 charging sessions per month

At a high level, about 380 Volta charging stations in Texas, with just under 1,000 or so in Northeast markets with retail choice

"Volta’s assets include an existing public EV charging network of over 3,000 charge points at destination sites (shopping centers, grocery stores, pharmacies, etc.) across 31 U.S. states and territories, a development pipeline of more than 3,400 additional charge points, and capabilities to continue developing, operating, and monetizing EV charging infrastructure," Shell said

"Beyond providing a charging service, Volta specializes in generating advertising revenues from screens embedded into the charge point. Volta’s advertising capability and early mover advantage have allowed the company to secure prime spots and portfolio-level contracts with site hosts in high-value, high-traffic markets," Shell said

Under the terms of the merger agreement, Shell USA Inc. 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 percent premium to the closing price of Volta stock on January 17, 2023, the last full trading day prior to the announcement of the transaction.

At close, Shell will also repay Volta’s 3rd party debt, estimated at USD $14 million

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 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 transaction is expected to close in the first half of 2023. The closing of the merger is subject to the approval of Volta's stockholders, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other applicable regulatory approvals, 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.