Select Financial Highlights
- Increases Infrastructure Backlog of approximately $138 million
as of June 30, 2023, by approximately $12 million, with EV
infrastructure projects now representing 34%
- The transaction is expected to be accretive to both EBITDA and
free cash flow in the first full year of ownership
Strategic Highlights
- Broadens customer footprint and recurring revenue
capabilities
- Expands Charge’s in-house capability to self-perform work in 25
states
- Further solidifies EV infrastructure experience with visionary
team, customers and technology
- Enhances auto dealership network and increases combined EV
charging installation experience to over 600 chargers
installed
Charge Enterprises, Inc. (Nasdaq: CRGE) (“Charge” or the
“Company”), an electrical, broadband and electric vehicle (“EV”)
charging infrastructure company, announced today, the successful
acquisition of Greenspeed Energy Solutions, L.L.C. (“Greenspeed”),
a leading provider of sustainable energy solutions including EV
charging infrastructure, solar, and energy storage. This strategic
move reflects Charge’s commitment to expand its capabilities to
self-perform all essential client services and expand its
geographic footprint. This acquisition provides further vertical
integration that creates opportunities for Charge to serve its
clients directly rather than through subcontractors, driving higher
quality service.
Founded in 2006, Greenspeed has established itself as a leading
provider in the sustainable energy space, providing customers
across the United States with turnkey solutions for EV charging
infrastructure, efficient commercial lighting, solar, and battery
storage. With a focus on auto dealerships, Greenspeed has
successfully completed over 200 auto dealership EV electrification
projects across 14 states, demonstrating its expertise in this
sector. Greenspeed’s comprehensive services include white glove
support, consultation, equipment procurement, installation,
software solutions, maintenance, warranties, and are primarily
executed in-house. Greenspeed is also able to provide its customers
with a subscription-based consumer payment solution to facilitate
charging-as-a-service.
Greenspeed is also an installer for Georgia Power, a utility
company and electricity generator. Furthermore, Greenspeed has
forged a strategic alliance with the city of Brookhaven, Georgia, a
suburb of Atlanta, underscoring its dedication to supporting and
collaborating on various aspects pertaining to EVs. This alliance
encompasses a diverse array of initiatives and projects aimed at
fostering the promotion and advancement of EV adoption within the
city.
The integration of Greenspeed into Charge’s organization is
anticipated to have a strategic impact on Charge’s Infrastructure
segment, providing expertise and capacity to efficiently execute
and deliver upon existing backlog projects. By acquiring
Greenspeed, Charge obtained approximately $12 million in project
backlog, bringing the combined backlog for the Infrastructure
segment to approximately $150 million as of June 30, 2023. The
combined EV charging infrastructure installations will now total
approximately 600 charging stations, consisting of 410 level 2
charging stations and 190 DCFC (level 3) charging stations. In
addition, both Greenspeed and Charge have proactively installed
infrastructure to accommodate additional chargers their customers
purchase in the future to meet the rising demands of EV charging.
The combined skilled workforce is expected to be a customer service
differentiator for Charge but is also expected to enable higher
margins as more work is performed in-house. Charge looks to
capitalize on the combination of Greenspeed with its existing EV
charging infrastructure business to drive efficiencies, provide
even better and more comprehensive customer solutions, further
enhance its nationwide capabilities, and ultimately provide more
value to customers and shareholders. The transaction is expected to
be accretive to both EBITDA and free cash flow in the first full
year of ownership.
Management Commentary
“We are thrilled to announce the acquisition of Greenspeed,”
stated Andrew Fox, Founder, Chairman and Chief Executive Officer of
Charge Enterprises. “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.”
“We are excited to join forces with Charge and become an
integral part of their dynamic organization”, said Paul M.
Williams, CEO and President of Greenspeed. “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.”
Transaction Details
Under the purchase agreement, Charge has acquired Greenspeed for
a purchase price of up to $15 million, net of closing adjustments,
which includes $6 million in cash and $2 million of Charge common
stock at closing, and the potential for an additional earn-out
payments of up to $7 million cash in the aggregate contingent upon
achieving certain EBITDA milestones for each of the two years
following closing of the transaction. The stock consideration is
subject to a lock up agreement which provides for restrictions on
transfer through December 2025.
Paul Williams, President & CEO of Greenspeed, and other
senior leadership members will be joining Charge Enterprises as a
part of the transaction. Mr. Williams will take the lead role in
the future of our combined EV charging infrastructure business.
About Greenspeed Energy Solutions, LLC
Founded in 2006, Greenspeed has established itself as a leading
provider in sustainable energy space, serving customers across the
United States with turnkey solutions for EV charging
infrastructure, efficient commercial lighting, solar, and battery
storage. Greenspeed’s track record, combined with their
cutting-edge technologies and comprehensive service offerings, has
solidified their position as a trusted and successful provider in
the sustainable energy solutions industry.
To learn more about Greenspeed, visit Greenspeed.com.
About Charge Enterprises, Inc.
Charge Enterprises, Inc. is an electrical, broadband and EV
charging infrastructure company that provides clients with
end-to-end project management services. We operate in two segments:
Infrastructure, which has a primary focus on 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. Our vision is
to be a leader in enabling the next wave of transportation and
connectivity. By building, designing, and operating seamless
infrastructure for electric vehicles, we aim to create a future
where transportation is clean, efficient, and connected and to
empower individuals, communities, and businesses to thrive in a
more sustainable world. Our plan is to cultivate repeat customers
and recurring revenue by deploying a multi-phased strategy,
initially where investment in the EV charging revolution is taking
place, the nation’s approximately 18,000 franchised auto
dealers.
To learn more about Charge, visit Charge Enterprises, Inc.
Notice Regarding Forward-Looking Information
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect
current expectations or beliefs regarding future events or Charge's
future performance. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
“potential”, "continues", "forecasts", "projects", "predicts",
"intends", "anticipates", "targets" or "believes", or variations
of, or the negatives of, such words and phrases or state that
certain actions, events or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved. All
forward-looking statements, including those herein, are qualified
by this cautionary statement. Although Charge believes that the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements involve risks and
uncertainties, and actual results may differ materially from any
future results expressed or implied by such forward-looking
statements. Such risks and uncertainties include the ability to
achieve the expected benefits of the Greenspeed acquisition,
including the risks that the Company’s synergy estimates are
inaccurate or that the Company faces higher than anticipated
integration or other costs in connection with the acquisition, the
business plans and strategies of Charge, Charge's future business
development, market acceptance of electric vehicles, the success of
Charge’s retail dealership initiative and the size, scope and
success of the related initial installation projects, Charge's
ability to generate profits and positive cash flow, changes in
government regulations and government incentives, subsidies, or
other favorable government policies, rising interest rates and the
impact on investments by our customers, and other risks discussed
in Charge's filings with the U.S. Securities and Exchange
Commission ("SEC"). Readers are cautioned that the foregoing list
of risks and uncertainties is not exhaustive of the factors that
may affect forward-looking statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The
forward-looking statements in this press release speak only as of
the date of this press release or as of the date or dates specified
in such statements. For more information on us, investors are
encouraged to review our public filings with the SEC, including the
factors described in the section captioned “Risk Factors” of
Charge’s Annual Report on Form 10-K filed with the SEC on March 15,
2023, as well as subsequent reports we file from time to time with
the SEC which are available on the SEC's website at www.sec.gov.
Charge disclaims any intention or obligation to update or revise
any forward- looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801904081/en/
Investors Christine Cannella
(954) 298-6518 ccannella@charge.enterprises
Kevin McGrath (646) 418-7002 kevin@tradigitalir.com
Media Kristopher Conesa
(305) 975-5934 kconesa@csuitepr.com
Charge Enterprises (NASDAQ:CRGE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Charge Enterprises (NASDAQ:CRGE)
Historical Stock Chart
From Jul 2023 to Jul 2024