NxtPhase To Be Acquired by Beacon Power
VANCOUVER, BC (Apr 25, 2005) – NxtPhase T&D Corporation, a leading provider of digital relays, recorders, and fiber optic solutions for the electric power industry, today announced that it will be acquired by Beacon Power Corporation (Nasdaq: BCON).
NxtPhase will operate as a subsidiary of Beacon Power and will continue to market its relay and recorder and optical sensor product lines under the well-established NxtPhase brand name. Beacon Power is a publicly traded Massachusetts-based company that designs sustainable energy storage and power conversion solutions, including megawatt-level utility grade flywheel-based energy storage systems for frequency regulation and voltage support.
NxtPhase CEO, Andrea Johnston commented, "NxtPhase is moving from being a venture-funded firm to become part of a public company, giving investors an opportunity to be part of a broader company with an array of solutions focused on grid stability and improvement. For our customers, there is added confidence in doing business with a more diversified company with improved capital market access."
"Our customers and OEM partners will not feel any impact from the new ownership arrangement," remarked Tim Leyshock, NxtPhase VP Sales & Marketing. "Over the long term they will benefit from the strength of a larger company focused on their needs as they make improvements to the transmission infrastructure."
The acquisition agreement between Beacon Power and NxtPhase results from introductions made by Perseus, L.L.C. Perseus, NxtPhase and Beacon Power are affiliates of one another. At closing, Beacon will acquire NxtPhase for approximately 15.7 million new common shares of Beacon (subject to adjustment as described in the agreement). Also, immediately after closing, Beacon will grant restricted stock units covering approximately 2.7 million new common shares of Beacon to the NxtPhase employees. As of April 22, 2005, the closing bid price of Beacon Power shares on Nasdaq was $0.84 per share. The acquisition is subject to approval from shareholders and regulatory authorities.
As Beacon Power and NxtPhase proceed with approvals, Perseus has committed to fund NxtPhase with an additional $US 1.5 million of equity financing to ensure stable uninterrupted operations for the company.
Further information may be found in Beacon Power's press release and SEC filings.
About NxtPhase T&D
NxtPhase T&D Corporation develops, manufactures, and markets optical sensors and digital protection and recording solutions that are designed to change the way high-voltage electric power is managed in a competitive electric power industry. Optical current and voltage sensing products offer more accurate digital information, broader dynamic range, wider bandwidth, improved safety, and significant environmental benefits compared with conventional technologies. NxtPhase T&D Corporation is a privately held company with sales and manufacturing operations in the U.S. and Canada. Find out more about innovative NxtPhase solutions at www.nxtphase.com.
About Beacon Power Corporation
Beacon Power Corporation designs sustainable energy storage and power conversion solutions that would provide reliable electric power for the utility, renewable energy, and distributed generation markets. Beacon's Smart Energy Matrix is a design concept for a megawatt-level, utility-grade flywheel-based energy storage solution that would provide sustainable power quality services for frequency regulation, and support the demand for reliable, distributed electrical power. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. More information is available at www.beaconpower.com.