Menomonee Falls-based energy company EnSync Inc. has acquired Annapolis, Maryland-based DCfusion LLC in a non-cash transaction, effective Feb. 28.
EnSync Inc., dba EnSync Energy Systems, creates distributed energy resource systems and internet of energy control platforms, most of which use DC power. Its products are used in the utility, commercial, industrial and multi-tenant building sectors. It also has offices in California and Hawaii. The company has about 80 employees. Its 2016 revenue was $2.1 million.
DCfusion engineers direct current systems. It also consults and offers policy recommendations in the DC system space. It will operate in place as a subsidiary of EnSync Inc. It has just two employees, who are the founders and principals.
According to EnSync, having a DC or hybrid DC-AC system is becoming increasingly important as the U.S. electrical grid takes on larger loads and integrates renewable energy generation, the sources of which are mostly DC. Energy storage is also in DC format, electricity trade is simpler in DC and resiliency of systems is improved with DC power, the company said.
DCfusion brings skills and established networks in vertical markets and applications that match with EnSync’s technology and capabilities. EnSync expects the acquisition will bring in DC system design and consulting experience. EnSync expects the acquisition to be accretive this year.
“We really acquired the principals of DCfusion,” said Dan Nordloh, executive vice president, adding the founders are authorities in DC power, microgrids and critical power infrastructure.
Under the terms of the acquisition, DCfusion’s principals, Tim Martinson and David Geary, have received inducement stock options and employment agreements. The inducement stock option was for the purchase of 90,000 shares of EnSync common stock with an exercise price of 56 cents per share, which would vest and become exercisable on Feb. 28, 2020. They have the opportunity to earn a combined 20 percent equity in DCfusion based on performance.
“EnSync Energy has extensive experience in DER system design and integration, and DCfusion’s ability to aggressively drive differentiated capabilities to target markets furthers EnSync Energy’s value chain expertise, and opens up a consulting services revenue stream for the company,” said Brad Hansen, president and chief executive officer of EnSync Energy Systems.
