EnSync Energy Systems, a developer of Distributed Energy Resource (DER) systems and Internet of Energy (IoE) control platforms for the utility, commercial, industrial and multi-tenant building markets, has announced the acquisition of DCfusion, a Direct Current (DC) systems engineering design, consulting and policy developer.
The United States electrical grid is a vast just-in-time network that requires constant load balancing, and relies on a synchronic operating methodology that does not lend itself well to intermittent activity, such as renewable energy generation, according to EnSync. As an increasingly electricity consuming world shifts to a portfolio comprised of more renewables, the need for DC based and hybrid DC-AC system design becomes increasingly critical for numerous reasons, including: Renewable energy sources that are largely DC, Energy storage is natively DC, Electricity trade is much simpler using DC, Resiliency is better achieved with DC.
In summary, direct current power systems offer numerous benefits in terms of reliability, price, performance and higher level of power articulation, the company said, which contributed to its decision to pursue this acquisition.
DCfusion brings decades of customer applied DC system design and consulting experience to complement EnSync Energy’s application engineering. DCfusion also brings a substantial pipeline of potential projects in vertical markets that rely on the consultative expertise of the founders, and the authoritative voice of policies, programs and standards shaping the DC-centric technical and market landscape.
Tim Martinson, Co-Founder and Principle, DCfusion, brings years of experience in developing and deploying value-based engineered systems for Fortune 100 global power and control OEMs across the country. David Geary, Co-Founder and Principle, DCfusion, for his entire career has delivered innovation and leadership to numerous electrical engineering projects in a variety of markets, including government and private infrastructure engineering, design, construction and operations.
The essential terms of the asset-based acquisition include for EnSync Energy to provide for each of the two principles to receive inducement stock options and employment agreements, as well as the opportunity to earn a total combined 20 percent equity in DCfusion based on performance. No cash is required to complete the transaction. DCfusion will operate as a subsidiary of EnSync, and the acquisition is expected to be accretive to EnSync Energy within the calendar year.
“EnSync Energy has extensive experience in DER system design and integration, and DCfusion's ability to aggressively drive differentiated capabilities to target markets furthers EnSync Energy's value chain expertise, and opens up a consulting services revenue stream for the company,” said Brad Hansen, President and CEO, EnSync Energy Systems.
Edited by
Alicia Young
