Path Investments to acquire DG Innovate for £32m
UK-based Path Investments plc has signed a conditional sale and purchase agreement to acquire DG Innovate for £32 million.
DG Innovate is a Bristol-based advanced research and development company focusing on developing novel electric motor technologies and energy storage solutions.
It was established in 2009 by Martin Boughtwood, an engineer and inventor with more than four decades of experience. Martin Boughtwood is likely to join the board of Path Investments as chief technology officer after the completion of the proposed deal.
Currently, DG Innovate is developing products along with major manufacturers in the transportation and energy sectors, research institutions, and the UK Ministry of Defence (MOD). In the last five years, the company has filed more than 20 patents around the world.
DG Innovate’s two main products are Enhanced Drive Technology (EDT) and Enhanced Battery Technology (EBT).
Enhanced Drive Technology is aimed at developing ultra high efficiency, lightweight, cost-effective electric motors and electronics, while Enhanced Battery Technology is designed for making fully-recyclable, sodium-ion batteries.
The sodium-ion batteries developed by the technology are expected to provide comparable or greater energy density to the present battery technologies at lower cost and environmental impact.
Christopher Theis — CEO of Path Investments said: “DG Innovate is at the forefront of motor drive technology for electric vehicles, with its innovative technology, together with offering, through its sodium-ion battery technology, a potentially cleaner and cheaper alternative to incumbent technologies.
“We believe that DG Innovate’s technology and IP portfolio, targeted at current market technology’s shortcomings, coupled with its strong commercial relationships, high calibre technical staff and near-term commercialisation opportunities make it the ideal target for Path.”
The proposed deal is subject to the approval of the independent shareholders of Path Investments and waiver of Rule 9 of the Takeover Code by the Takeover Panel.