Electro Power Systems (“EPS”), a technology pioneer in energy storage systems and microgrids, has announced the purchase of a majority stake in its company by Engie.

The purchase is integral to Engie’s strategy, with the French company focused on taking on the major challenges of the energy revolution, and moving towards a more decarbonised, decentralised and digitalised world.

With the transaction, a broad industrial partnership to scale up globally, both companies aim at further accelerating their vision to be at the forefront of the energy transition, with special focus on decentralised energy solutions.
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The transaction was executed at €9,5 per share and will be followed by the filing of a simplified mandatory tender offer at the same price, subject to the fairness opinion of Associé en Finance.

In a statement confirming the move, Shankar Krishnamoorthy, Executive Vice President of ENGIE said, “EPS is a recognized technology provider in the microgrid market with a differentiating control technology and already significant micro-grid installed base, in particular in Africa and Asia Pacific.”

“We sincerely welcome EPS at ENGIE and its highly specialized and sophisticated high-tech teams. Together, we will achieve a major step to become a decentralized energy leader and confirm that energy transition is at the core of the strategy and transformation of ENGIE. With decentralized clean energy, we also bring a key contribution towards more harmonious development.

Carlalberto Guglielminotti, Chief Executive Officer and General Manager of EPS commented “This is a transformational step for EPS. We share ENGIE’s strategic vision of a paradigm shift in the energy system towards decentralized energy solutions: in advanced economies renewables are displacing conventional centralized power plants, calling for distributed energy storage to secure flexibility and capacity; thus, value added migrates from traditional energy supply to the delivery of advanced services.”

 In parallel, in emerging economies, storage-enabled renewables open a market of 2.4 billion people reliant on diesel generation. EPS has been delivering one of the largest installed bases of commercial microgrids and utility-scale systems globally: today, our unique technological platform combined with ENGIE’s global reach, establishes a driving force of the energy transition”.

The transaction, which is subject to standard condition precedents, will be completed during the first quarter of 2018.