NaaS Technology Inc. to Acquire Charge Amps for US$66.4M to Serve Global Energy Service Market
Issuing time:2023-08-26 15:48
On Aug. 22, an acquisition plan was announced by NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS"), a leading EV charging solution provider listed on Nasdaq since June 13, 2022, to acquire Swedish EV charging infrastructure supplier Charge Amps AB ("Charge Amps") at SEK 724 million (US$66.4 million) of its 100% issued and outstanding shares. The deal ensures the two companies grow and expand together, also leaves an active attention on how their concerted capacity and efforts would bring greater value for new energy industries, consumers and communities in Europe and worldwide.
Growing opportunities in EV adoption and consequently EV charging services not only show huge prospects in Europe, but also on a broader global scope. Europe as now the world's second-largest new energy vehicle market, constituting more than 90% of the global new energy market share together with China and the U.S.. According to the International Energy Agency (IEA), the number of new energy vehicles sold in Europe surged at a CAGR of 52.44%. The same trend is seen across the globe; in its "Global Electric Vehicle Outlook 2023" report, the IEA expects the global annual EV penetration rate to reach a staggering 60%.
Although the strong adoption rate painted a hopeful trend in the transportation industry's transition toward sustainability, the development of the supporting infrastructure did not keep pace. Between 2016 and 2022, public charging service ownership in Europe only increased from 116,100 to 474,700 at a CAGR of 26.44%. Similarly, EVs outnumber public charging stations 16:1, indicating a significant gap in service. With Europe expected to sell nearly 62 million EVs by 2030, a massive untapped opportunity exists within Europe's charging market, which, seen from this, makes the collaboration between NaaS and Charge Amps a paragon of hardware and software integration.
NaaS’ plan to acquire Charge Amps is the latest step toward the international limelight and an important milestone in its global strategy dedicated to become energy service provider worldwide. NaaS is a NASDAQ-listed subsidiary of NewLink, an energy IoT company specializing in energy digitalization. Its globalization strategy has been rapidly expanded through its continuing acquisition moves. Just in June 2023, it acquired an 89% stake in Sinopower HK, the biggest one-stop solar PV service provider in Hong Kong.
With an affinity for innovation and a prestigious brand, Charge Amps is a perfect and promising target for NaaS. Charge Amps is Sweden's second-largest EV infrastructure supplier, accounting for approximately 22% of the sector's market share. With operations in 13 markets, Charge Amps' established presence and market penetration in Sweden will grant NaaS a strong foothold in Europe, where swelling number of EV is expected to witness in the region, and “marking an important milestone as we continue to expand into the international market," as stated by Alex Wu, Co-founder, President and CFO of NaaS, in the official announcement.
In turn, NaaS will not only enable Charge Amps to maintain its brand prestige of designed locally and manufactured locally, but also supplement it' with an extended charging product portfolio and value-added solutions, as Charge Amps CEO Olle Tholander commented in the official announcement, “We believe that NaaS has both the expertise and financial strength to support Charge Amps’ growth journey under the same brand in Europe with an expanded product offering and the means to expedite the Company’s expansion plans,” leading to the conclusion that this is “the best solution for the Company’s long-term strategy and growth plan.”
Together, the two parties will move forward in accordant vision to enable a robust and complete energy ecosystem that adequately fills the need for EV charging as well as energy storage and energy services globally, as said by Olle Tholander, “to bring more competitive and purposeful solutions to users, but also accelerate the transition to an electrified life and open the gateway to a smarter ecosystem”.
Article classification: business 0