Volta Inc. has executed a definitive merger agreement under which Shell USA Inc., a subsidiary of Shell plc, will acquire Volta in an all-cash transaction valued at approximately $169 million.
The transaction brings Volta’s dual charging and media network to Shell’s established brand and seeks to unlock long-term growth opportunities in electric vehicle (EV) charging.
“The shift to e-mobility is unstoppable, and Shell recognizes Volta’s industry-leading dual charging and media model delivers a public charging offering that is affordable, reliable and accessible,” says Vince Cubbage, interim CEO. “While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward.
“Both Volta and Shell have a demonstrated ability to meet the changing needs of customers, and this acquisition will bring that experience together to provide the options that are needed as more drivers choose electric,” Cubbage continues.
This acquisition builds on the momentum in electric mobility by combining an EV charging and media company with a large energy supplier. The transaction provides the opportunity to unlock Volta’s signed pipeline of charging stalls in construction or evaluation and capture the seismic EV charging market opportunity. Following the completion of the transaction, there will be no immediate change in driver experience, Volta Media Network capabilities available to advertisers, or services provided to commercial properties and retail locations.
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.
The transaction is expected to close in the first half of 2023.