SOUTHBOROUGH, Mass., 26 March 2007.Protonex Technology Corporation, a manufacturer of high-performance proton exchange membrane (PEM) fuel cell power systems, has entered into an agreement to acquire Mesoscopic Devices, an industry leader in solid oxide fuel cell (SOFC) technology, fuel reforming, and desulfurization systems, in exchange for a total consideration of $12.4 million.
Mesoscopic Devices, based in Broomfield, Colo., is a provider of 10- to 1000-watt fuel cell power solutions and has developed two platforms of integrated power systems based on SOFC and direct methanol fuel cell (DMFC) technologies, including one of the first portable SOFCs operating on liquid fuels.
Established in 1998, the company's principal business has been development of portable fuel cell technology for government, military, and commercial customers including the U.S. Army, U.S. Navy, DARPA, and NASA. To date the company has received over $13 million in cumulative contracts. The unaudited accounts of Mesoscopic Devices for the year ended December 31, 2006, show revenue of $3.2 million, net income of $0.1 million, and net assets at December 31, 2006, of $0.7 million.
Scott Pearson, Protonex CEO, stated, "The combination of Protonex and Mesoscopic Devices will allow us to build on the clear technical and market synergies that exist between the two businesses and considerably strengthen our position as a leader in the portable fuel cell industry. We are very impressed with Mesoscopic Devices' technical capabilities and expect operations on both sides to move forward quickly, resulting in a greater opportunity to capture increased market share with our expanded product offerings. With this acquisition, we believe that Protonex will be the only portable power company in the world with the ability to offer our customers the benefits of both PEM and SOFC technologies."
Protonex will focus the Mesoscopic Devices team primarily on the development of several SOFC-based product platforms. The first SOFC platform fueled by propane gas is currently at the functional prototype stage. Additional SOFC platforms fueled by gasoline, diesel, and JP8 are in advanced development and will be accelerated with additional resources from Protonex.
