Azure Dynamics Acquires Solectria

Advanced Battery Technology, Feb 2005

Azure Dynamics Corp. of Vancouver, British Columbia, a leading developer of hybrid-electric power trains for commercial vehicles, has reached an agreement to acquire all of the outstanding shares of Solectria Corp. of Woburn, Massachusetts, a hybrid-electric powertrain and components supplier to the U.S. military and builder of parallel hybrid-electric systems for commercial vehicles.

The acquisition is made in exchange for approximately 25,681,000 common shares, resulting in Solectria's shareholders owning 20% of Azure's issued and outstanding common shares post-closing. Solectria President and COO John Mulcair will become president and COO of the combined company. Azure CEO David Deacon will remain on the board of directors and become executive vice president of marketing and business development. Solectria CEO James Worden will independently pursue opportunities in the renewable energy sector and become a member of the Azure Dynamics advisory board.

Deacon says, "This is a great opportunity for Azure to gain a U.S. base and strengthen our market-leading position. We believe the hybrid-electric commercial vehicle industry is going to experience consolidation in the near and medium term, and this acquisition positions Azure at the forefront of our industry and as a world leader in hybrid-electric systems for commercial vehicles."