Plug Power Inc. announced acquisition of ReliOn Inc., said a report from Reuters. The all stock deal was valued USD4 million. Plug Power has been looking to expand its supplier base and the acquisition of fuel cell stack manufacturer ReliOn allowed it to gain strong foothold.
The shares of Plug Power surged 4.5 percent after the deal was closed. The deal also allowed ReliOn to widen its foothold in the fuel cell industry, reported Reuters.
Currently, Power Plug’s fuel cell stacks for North America and some countries in Europe are exclusively supplied by Canada based Ballard Power Systems Inc.
On Wednesday, Ballard Power shares dropped 3 percent in extended trading. However, the shares of the company went higher at 8.5 percent at the end of trading on the NASDAQ.
Meanwhile, Power Plug said that the company has expected to add more earnings by 2015 for its acquisition of ReliOn. The company also said that its acquisition of ReliOn would also add to the development of its GenDrive fuel-cell system products.
Plug Power had been expected to post its first profit in the fourth quarter of 2014. The company’s shares closed at USD7.48 per share piece on the NASDAQ.
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