A Norwegian company has agreed to purchase Wallingford’s Proton OnSite for approximately $70 million in cash and stock, the two announced Monday.
Nel ASA, which like Proton makes equipment called electrolyzers, has signed a non-binding term sheet with Proton, a manufacturer of hydrogen-generation technology used in submarines, hydrogen vehicles and industrial settings.
“This will give Nel a strong foothold in the U.S. and other markets beyond our current position,” Nel CEO Jon André Løkke said in a statement, adding that the combined entity would be the largest hydrogen electrolyzer company in the world.
Since 1996, Proton has installed 2,600 electrolyzer units in more than 75 countries. The company booked $27 million in revenue last year and has approximately 90 employees, according to the companies.
“We see strong strategic benefits from combining our technological footprint, and think we can accelerate our combined growth and benefit from all the exciting opportunities we see ahead of us,” Proton CEO Robert Friedland said.
Proton CFO Sheldon Paul said Monday by phone that the company intends to keep its local operations and workforce.
Nel and Proton hope to close the sale in the second quarter.
