AMSC Acquires Infinia Technology Corporation
September 26 2017 - 4:05PM
AMSC (NASDAQ:AMSC), a global energy solutions provider serving wind
and power grid industry leaders, today announced that it has
acquired Infinia Technology Corporation (ITC), a cryo-cooling
company located in Richland, Washington. At closing, AMSC
paid the selling stockholders an aggregate purchase price of $3.75
million as follows: $100,000 in cash, and 884,890 shares of AMSC
common stock.
AMSC believes ITC creates a unique strategic opportunity for its
grid business. AMSC expects to build on grid business offerings and
deliver greater value to its customers, business partners and
shareholders by having control over the production of another key
element of AMSC’s Ship Protection Systems (SPS). AMSC’s production
of this key element is expected to allow for the expansion of SPS
margins while increasing the overall AMSC content per Ship
Protection System and ensuring enhanced quality of content in these
products.
“AMSC currently has PowerModule™ technology in its Electrical
Control Systems and D-VAR® products. ITC adds high performance
cryo-cooling to our system-level solutions and represents an
opportunity for a ColdModule technology for AMSC’s SPS product,”
said Daniel P. McGahn, President and CEO of AMSC. “The addition of
ITC helps expand our portfolio of proprietary technology and adds
system-level value beyond the production of our wire.”
ITC is a technology firm founded in 2009 specializing in the
design, development and commercialization of cryo-coolers for a
wide range of applications. ITC holds several U.S. government
contracts including ones from the U.S. Navy. The company’s
cryo-coolers outperform commercially available alternatives from
both an efficiency and noise perspective and enable 50% more
cooling power for AMSC’s SPS. We believe that there are no other
cryo-coolers currently on the market with the same efficiency
performance as ITC.
ITC has produced several coolers and provided them to the U.S.
Navy. The cryo-coolers have demonstrated that the technology is
capable of producing the necessary amount of cooling at the
efficiency levels needed. AMSC believes the acquisition of ITC will
help AMSC deliver unique Ship Protection Systems to the U.S. Navy
while providing strategic leverage for other applications within
its grid segment.
Conference Call In conjunction with this
announcement, AMSC management will participate in a conference call
with investors beginning at 10:00 a.m. Eastern Time on Wednesday,
September 27. The live call can be accessed by dialing 866-548-4713
and using conference ID 4591678. Those who wish to listen to the
archived conference call webcast should visit the "Investors"
section of the Company's website at
http://www.amsc.com/investors.
About Infinia Technology Corporation
(ITC)Formed in 2009 as a wholly owned R&D subsidiary,
Infinia Corporation, ITC was spun out in 2011 as an independently
owned and controlled entity. Prior to the acquisition, it was a
close affiliate of Qnergy Inc. in Ogden, UT, successor to Infinia
Corporation. ITC transitioned a very successful Small Business
Innovation Research program into a transformational technology.
This high efficiency, very low-temperature cryo-cooler for Navy
High Temperature Superconductivity (HTS), and related national
security applications, has demonstrated world record performance
levels.
About AMSC (NASDAQ:AMSC)AMSC generates the
ideas, technologies and solutions that meet the world's demand for
smarter, cleaner … better energy™. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy.
Through its Gridtec™ Solutions, AMSC provides the engineering
planning services and advanced grid systems that optimize network
reliability, efficiency and performance. The Company's solutions
are now powering gigawatts of renewable energy globally and are
enhancing the performance and reliability of power networks in more
than a dozen countries. Founded in 1987, AMSC is headquartered near
Boston, Massachusetts with operations in Asia, Australia, Europe
and North America. For more information, please
visit www.amsc.com.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy,
PowerModule™, and D-VAR® trademarks or registered trademarks
of American Superconductor Corporation. All other brand names,
product names, trademarks, or service marks belong to their
respective holders.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”). Such statements include, but are
not limited to, statements about our expectations regarding
anticipated effects and benefits of our acquisition of Infinia;
opportunity for a “Cold Module” technology for our SPS product;
strategic opportunities for our Grid business created by the
acquisition of ITC; delivering greater value to customers, business
partners and shareholders; AMSC’s ability to expand SPS margins and
increase the AMSC content per Ship Protection System while ensuring
quality; ongoing collaboration with the U.S. Navy and related plans
and goals; and other statements containing the words “believes,”
“anticipates,” “plans,” “expects,” “will” and similar expressions.
Such forward-looking statements represent management’s current
expectations and are inherently uncertain. There are a number of
important factors that could materially impact the value of our
common stock or cause actual results to differ materially from
those indicated by such forward-looking statements. These important
factors include, but are not limited to: Acquisitions may cause us
to incur substantial costs for which we may never realize the
anticipated benefits; We may be required to make additional
payments to the Infinia selling stockholders; We have a history of
operating losses and negative operating cash flows, which may
continue in the future and require us additional financing in the
future; Our operating results may fluctuate significantly from
quarter to quarter and may fall below expectations in any
particular fiscal quarter; Our financial condition may have an
adverse effect on our customer and supplier relationships; Our
success is dependent upon attracting and retaining qualified
personnel and our inability to do so could significantly damage our
business and prospects; Failure to successfully execute any move of
our Devens, Massachusetts manufacturing facility or achieve
expected savings following any such move; We rely upon third-party
suppliers for the components and sub-assemblies of many of our Wind
and Grid products, making us vulnerable to supply shortages and
price fluctuations; Many of our revenue opportunities are dependent
upon subcontractors and other business collaborators; Our products
face intense competition; Our success depends upon the commercial
use of high temperature superconductor (“HTS”) products, which is
currently limited, and a widespread commercial market for our
products may not develop; Third parties have or may acquire patents
that cover the materials, processes and technologies we use or may
use in the future to manufacture our Amperium products, and our
success depends on our ability to license such patents or other
proprietary rights; We may not realize all of the sales expected
from our backlog of orders and contracts; We have operations in and
depend on sales in emerging markets, and global conditions could
negatively affect our operating results or limit our ability to
expand our operations outside of these countries; We face risks
related to our intellectual property; We face risks related to our
legal proceedings; and the important factors discussed under the
caption “Risk Factors” in Part 1. Item 1A of our Form 10-K for the
fiscal year ended March 31, 2017, and our other reports filed with
the SEC. These important factors, among others, could cause actual
results to differ materially from those indicated by
forward-looking statements made herein and presented elsewhere by
management from time to time. Any such forward-looking statements
represent management’s estimates as of the date of this press
release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
Investor Relations Contact:
Brion D. Tanous
Phone: 424-634-8592
Email: Brion.Tanous@amsc.com
Public Relations Contact:
Nicol Golez
Phone: 978-399-8344
Email: Nicol.Golez@amsc.com
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