Vancouver’s Ballard Power Systems (TSX:BLD) has acquired United Technologies Corporation’s (UTC) fuel cell intellectual property (IP) assets for $22 million, Ballard announced April 24.
The IP, which relates to both transportation- and stationary-related fuel cells, consists of about 800 patents and applications, patent licences and invention disclosures.
“We believe that this acquisition gives Ballard a commanding position in strategic fuel cell IP, strengthening our ability to grow shareholder value,” said Ballard president and CEO John Sheridan.
“Further, our new alliance with United Technologies will bolster Ballard’s execution capabilities, particularly in the generation of IP licensing revenue.”
The investment consists of $2 million in cash and $20 million in common shares at $3.97 per share.
The two companies have also formed a joint advisory council, which will focus on exploring future commercial market applications.
Kelly Romano, vice-president of UTC’s innovation business development group, said, “With over 50 years of leading edge technology development, UTC’s fuel cell IP portfolio is widely recognized as one of the foundational and pioneering technology assets in the space.”
UTC focuses on high-tech products in the aerospace and building systems industries. Some of its products include Otis elevators and Pratt & Whitney aircraft engines.
As of press time, Ballard’s shares were up 2.95% to $4.54 per share.
