VivoPower Signs Definitive Agreement to Acquire 51% of Tembo e-LV

2020-10-12T14:29:59-04:00

Late last month we announced we’d signed a non-binding letter of intent to acquire a 51% shareholding in Tembo e-LV B.V., a Netherlands-based specialist battery-electric and off-road vehicle company. We’re now very pleased to confirm we’ve signed a definitive agreement and are moving forward with the USD$4.7 million acquisition.  

As we complete this exciting acquisition, Tembo will play an integral role in our sustainable energy solutions (SES) platform.  

Tembo’s expertise suits our accelerated SES roll out 

Tembo designs and develops a comprehensive fleet of customised electric vehicles (EVs), often for rugged applications. It services a diverse range of sectors, from mining, infrastructure and utilities to government services, game safaris and humanitarian aid. 

Given that we have an established customer base in mining, infrastructure and utilities, some of Tembo’s core markets, we are eager about the opportunities this acquisition presents. Our customers are already seeking unique opportunities to reduce their energy costs, increase productivity and become more sustainable long-term, and we can now offer the compelling option to electrify their fleets. 

We look forward to working even more closely with the Tembo team in scaling up its capacity to deliver customised and/or ruggedised commercial fleet electrification solutions,’ said Kevin Chin, VivoPower’s executive chairman and CEO. ‘This acquisition will enable [us] to accelerate the roll out of our sustainable energy solutions offering, with an initial focus on the mining, infrastructure and utilities sectors globally.’

Our analysis of publicly available industry data indicates that the acquisition could triple our global addressable light vehicle (LV) fleet market to USD$36 billion in the markets where Tembo is currently active. That estimate does not include Asia, South America or the United States, which could represent even further potential.  

Tembo will transform our growth trajectory 

Under the agreement, delivering EVs will become a pillar of our SES business. Tembo founder and CEO Frank Daams will remain with the company to oversee this. 

‘VivoPower’s investment will allow [us] to build capacity to meet pent up demand from our customers and improve efficiencies of scale,’ said Daams. ‘Given that the Tembo and VivoPower teams have already started working together on customer requests for proposals, we believe that this will translate into a growing order book.’

VivoPower will also have the option to acquire the remaining 49% of Tembo in the future. The transaction is subject to standard closing conditions, including capital structuring and funding mix requirements. Read the full press release here.

About VivoPower

VivoPower is an international battery technology, electric vehicle, solar and critical power services company whose core purpose is to deliver sustainable energy solutions to its customers. VivoPower is a certified B Corporation and has operations in Australia, the United States, Canada and the United Kingdom.

Forward-Looking Statements

This communication includes certain statements that may constitute “forward-looking statements” for purposes of the United States federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the completion of the Tembo acquisition, the anticipated benefits of the Tembo acquisition, and the related potential global addressable market. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.

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