Plug Power Inc has bought fuel cell developer Cellex Power Products Inc for USD45 million cash.
Cellex Power president and CEO Chris Reid said the Richmond, Canada-based company expected the move to hasten commercialisation of its fuel cell solutions for electric forklifts.
"Plug Power's strong balance sheet and established operational capabilities in manufacturing, supply chain management, and product testing, support and training, will be critical to this effort," he said.
Plug Power, of Latham, New York, offers fuel cell solutions for telecommunications applications. It is currently integrating fuel cell technology into backup power products for telecommunications companies. Telecommunications backup and materials handling applications were central components in the company's revenue growth strategy, a Plug Power statement said.
Plug Power president and CEO Roger Saillant said: "The acquisition marks Plug Power's commitment to providing clean, reliable on-site energy solutions and to the commercialisation of fuel cell technology across multiple robust market sectors."
Plug Power did not expect "significant management changes" at Cellex, which employed 42 people.
"Chris Reid, Cellex president and CEO, will remain onboard and continue to manage the overall day-to-day operations," the statement said.
Manufacturing, sales and support activities could be relocated in the future but Cellex's Richmond, British Columbia headquarters would continue operating.
Cellex Power, established in 1998, has been developing proton exchange membrane fuel cell power units for electric forklifts and targeting the estimated USD1.5 billion industrial motive battery market.
Last November, Cellex completed beta testing of its hydrogen fuel cell power units in pallet trucks at two Ohio-based Wal-Mart distribution centres.
Cellex initially focused on class 3 electric forklifts, often referred to as pallet trucks. The company's product strategy is to develop a full product portfolio for all three classes of electric forklifts.
Plug Power's revenue for the year ended December 31, 2006, was USD7.8 million, down from 2005's USD13.5 million. The company made a net loss of USD50.3 million compared to USD51.7 million in 2005.