SAN DIEGO, Oct. 10, 2023 (GLOBE NEWSWIRE) -- Beam Global, (Nasdaq: BEEM, BEEMW) (“Beam Global” or the “Company”), a leading provider of innovative sustainable products and technologies for electric vehicle (EV) charging, energy storage, energy security and outdoor media, today announced the execution of a Stock Purchase Agreement to acquire Europe based Amiga DOO Kraljevo (“Amiga”), an established manufacturer of specialized structures and equipment including street lights, communications and energy infrastructure, whose manufacturing, engineering and sales teams serve municipalities, states and commercial customers in 16 nations. The transaction, valued at approximately €10 million, is expected to close in early Q4 2023 at which time Amiga will be re-branded Beam Europe.
About Amiga
Amiga was founded in 1990, has approximately 210 employees and engineering, product development and manufacturing capabilities which Beam Global believes are ideally suited to perfect and manufacture the Company’s current products for the European market. Amiga is one of Europe’s leading manufacturers of streetlights and is well positioned to bring Beam Global’s patented EV Standard™ to market both in Europe and the U.S. Amiga’s team of qualified engineers will be integrated with Beam Global’s current team, providing a valuable enhancement and acceleration of product development cycles and a reduced requirement for Beam Global to add engineering headcount in the U.S.
Amiga reported over EUR 8.5M in revenue in 2022, generates positive cash-flows and is growing organically. Beam Global expects the acquisition to be accretive and the Company is planning for significant growth with Beam Europe’s combination of Amiga’s current business and Beam Global’s suite of clean-tech products.
Since 1990 Amiga has been selling to municipalities, states and commercial customers. Amiga’s customer profile in Europe is similar to Beam Global’s current customers in the U.S. The Company intends to introduce Beam Global’s current and future products to Amiga’s existing customers as well as other prospects in the European market. Amiga’s sales and marketing team will be integrated with Beam Global’s and the Company intends to add additional EV charging infrastructure sales expertise in Europe. The Company and Amiga anticipate retaining Amiga’s current workforce and all key employees have agreed to continue to support Beam Europe post acquisition.
“We have spent over 30 years building credibility and solid relationships with government and commercial customers in sixteen nations internationally. Many of our customers are repeat customers. Becoming part of Beam Global will allow us to market the latest renewably energized EV charging infrastructure products to our existing customers while opening up an entirely new set of opportunities for us. We have the engineering and operational capabilities to fabricate Beam products and a long list of prospects to market them to,” said Ivan Tlacinac, Amiga CEO and owner who will remain with the Company post acquisition and lead Beam Global’s European operations. “I am excited by the prospect of combining our engineering team with the talent in San Diego and Chicago so that we can rapidly introduce Beam’s existing and contemplated products like the EV Standard™ to Europe and the surrounding regions. There is a great deal of appetite for EV charging infrastructure, renewable energy and energy security in Europe, and Beam’s products provide all three. I am thrilled that we will soon be capitalizing on this opportunity as part of the growing Beam Global family."
Strategic Rationale for the Acquisition of Amiga – Market Expansion and Product Development
Beam Global believes that the acquisition of Amiga fast tracks its growth into the European market. This market offers excellent opportunities for our off-grid, zero construction/electrical work products because:
- the EU has mandated a transition to zero emission vehicles by 2035;
- the EU is heavily focused on green and sustainable energy and has committed to a net-zero energy infrastructure by 2050;
- the war in Ukraine has focused the EU on energy security and home-grown renewable sources; and
- the historic aging of streets and infrastructure make it more complicated to deploy grid-tied EV charging solutions than is the case in much of the United States.
The Company believes that Beam Global’s suite of current and future products are ideally suited for deployments where the above bulleted conditions exist because they require no construction or electrical work, are renewably energized and do not rely on the utility grid for electricity. The Company also believes the acquisition will increase barriers to entry for future competition and advance Beam Global’s position as a leader in the green economy.
“The European market offers significant opportunities for Beam Global expansion. The automotive market is larger than China or the U.S. and Europe’s commitment to sustainability, electrification and renewable energy is active both at the government and commercial levels,” said CEO of Beam Global Desmond Wheatley. “We believe that Amiga is a perfect fit for us because they have the skills, capabilities and factory facilities required to make our products using the IP that we have developed, patented and control. They successfully sell to the same customer profiles that have delivered us meteoric growth in the U.S. We should get immediate credibility and access to qualified prospects in 16 countries internationally. Amiga’s engineering and production teams are well suited to develop and produce our patented EV Standard product which I believe may become our biggest seller in both the U.S. and Europe. We have been working to find an opportunity like this for a long time and I am thrilled at the prospect of expanding our business into markets which I believe will be larger for us than the U.S. where we are currently experiencing dramatic organic growth. We are putting the “global” in Beam Global.”
According to Whichcar.com, Europe has approximately 405 million cars compared to approximately 290 million in the U.S. and 319 million in China according to CEIC data. In June of 2022, the European Parliament backed the European Commission’s proposal of zero emissions from new cars and vans by 2035. The EU has committed to reaching net-zero emissions from energy infrastructure by 2050. Beam Global views expansion into the European market as a major opportunity for growth.
Key Transaction Terms
Upon closing Beam Global will acquire Amiga for EUR 10M of initial consideration split as follows: (i) EUR 7M of cash of which EUR 4.5M will be paid at closing and an additional EUR 2.5M paid on Dec. 31, 2023 and (ii) EUR 3M in Beam Global’s stock distributed in the same proportions and timing as the cash payments.
The transaction also includes performance based earn-outs which will be distributed to Amiga shareholders as follows: (i) 2024 earn-out paid in Beam Global’s stock based on 2x the euro value of revenue above EUR 13.5M and (ii) 2025 earn-out paid in Beam Global’s stock based on 2x the euro value of revenue above the greater of EUR 18.2M or 135% of 2024 revenue.
As part of the consideration paid for Amiga, Beam Global will be receiving buildings and land independently valued at EUR 7M as well as plant and equipment independently valued at EUR 6M of replacement value.
About Beam Global
Beam Global is a clean technology leader providing innovative, sustainable products and technologies for electric vehicle (EV) charging, energy storage, energy security and outdoor media. Core platforms include Beam EV ARC™ and Solar Tree® sustainable EV charging systems, Beam AllCell™ high-performance energy storage solutions, energy resiliency and disaster preparedness products and a deep patent library.
Beam EV ARC™ EV charging infrastructure systems support any quality brand EV charging service equipment, and Beam AllCell™ battery solutions power micro-mobility, terrestrial EVs, aviation, maritime and recreational vehicles as well as stationery and energy-security platforms.
Beam develops, patents, designs, engineers and manufactures unique and advanced clean mobility solutions that protect the environment, save customers time and money, empower communities and keep people moving. Based in San Diego and Chicago, the company produces Made-in-America products with the mission to Lead the World to Clean Mobility. Beam Global is listed on Nasdaq under the symbols BEEM and BEEMW. For more information visit BeamForAll.com, LinkedIn, YouTube and Twitter.
Forward-Looking Statements
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/931b7ef4-b5da-4967-955f-b030fabe3284
