Amid that backdrop, Charge Enterprises will pay roughly $15 million up front for Greenspeed, though the overall purchase price could rise to about $22 million if Greenspeed reaches certain EBITDA (earnings before interest, taxes, depreciation & amortization) earn-out targets over the next two years. The M&A deal is expected to be accretive to both EBITDA and free cash flow in the first full year of ownership.
The combined company now supports 600 EV charging stations, consisting of 410 level 2 charging stations and 190 DCFC (level 3) charging stations, Charge Enterprises said.
Greenspeed Energy Solutions, founded in 2006, is based in Peachtree Corners, Georgia. The company has completed over 200 EV electrification projects for auto dealerships across 14 states. Greenspeed’s services include "white glove" support, consultation, equipment procurement, installation, software solutions, maintenance and warranties, the seller said. Key customers include Georgia Power and the city of Brookhaven, Georgia, a suburb of Atlanta.
Charge Enterprises, based in New York, provides end-to-end project management services in the electrical, broadband and EV charging infrastructure markets. The company operates in two market segments:
Infrastructure, which includes EV charging, broadband and wireless, and electrical contracting services; and
Telecommunications, which provides connection of voice calls, Short Message Services (SMS) and data to global carriers.
Charge Enterprises' revenue was $193.5 million in Q1 of 2023, up from $163.0 million in Q1 of 2022. Gross profit was $6.7 million in Q1 of 2023, up from $6.2 million in Q1 of 2022. The company expects to announce Q2 2023 financial results on August 9.
Charge's overall backlog for the infrastructure segment is $150 million (as of June 30, 2023). The figure includes a $12 million backlog from Greenspeed.
Electric Vehicle Charging Station M&A: Executive Perspectives
in a prepared statement about the deal, Charge Enterprises CEO Andrew Fox (pictured, top of page) said: “We are thrilled to announce the acquisition of Greenspeed. We have tremendous respect for the talented team and leadership at Greenspeed and we are excited to welcome them to our family. This strategic move marks a significant milestone for Charge. Greenspeed’s strengths align perfectly with our vision and growth objectives, allowing us to extend our reach and deliver even greater value to our customers and our shareholders. We believe this acquisition will further drive growth, innovation, and lasting success for our organization.”
Added Greenspeed CEO Paul M. Williams: “We are excited to join forces with Charge and become an integral part of their dynamic organization. With a shared vision and complementary strengths, we will deliver even greater value to our customers and seize new opportunities in the EV charging market.”
Williams and other Greenspeed senior leadership members will join Charge Enterprises. Williams' new title was not announced.