Emerald Technology Ventures, a global climate tech venture capital firm, today announced that its portfolio company, Spear Power Systems has entered into an agreement to be acquired by Sensata Technologies. Since its founding in 2013, Spear has become a global leader in developing differentiated energy storage solutions that push the safety and performance threshold for highly critical applications. Spear’s systems are designed to provide the highest levels of safety in demanding applications while at the same time maximizing the amount of energy or power per unit of weight or within a given volumetric envelope. Sensata Technologies (NYSE: ST) is a leading industrial technology company and provider of sensor-rich solutions and insights for customers.
Emerald led the Series B investment round in Spear Power in 2019 and was joined by its limited partners ABB Technology Ventures, Chevron Technology Ventures and Nabtesco Technology Ventures, as well as Energy Innovation Capital and existing investor Evergy Ventures.
Gina Domanig, Managing Partner of Emerald Technology Ventures and Spear Board Director stated: “We continue to be impressed with Spear’s management team and its ability to create a strong market position based on valued product differentiation. This is an excellent outcome for all parties and we are convinced that Sensata will provide an outstanding platform from which Spear can excel even further.”
Spear’s co-founder and CEO, Jeff Kostos, expressed excitement about the deal: “Since our inception in 2013, Spear has had a goal of developing technically differentiated solutions in energy storage to address the growing demand in the niche e-mobility markets within which we operate. This deal will mean increased resources so that our incredible team can expand our development, commercial, and operational activities at a pace to meet the rapidly growing need for clean energy solutions. We are very excited to play a meaningful role in contributing towards Sensata’s electrification strategy.”
The acquisition of Spear Power Systems advances Sensata’s electrification portfolio and strategy into new clean energy markets. “We are pleased that the talented Spear Power Systems team, including over 40 highly experienced engineers, will be joining Sensata,” said Vineet Nargolwala, Executive Vice President, Sensing Solutions at Sensata Technologies. “Spear Power Systems enables us to deliver more comprehensive energy storage solutions to help enable the electrification and replacement of combustion applications in support of OEM customers in diverse end-markets. These capabilities will be strong additions to our product portfolio and will help drive our electrification growth vector and accelerate our clean energy strategy.”
Guggenheim Securities LLC acted as exclusive financial advisor and Wilson Sonsini Goodrich & Rosati, P.C. acted as legal counsel to Spear Power Systems on the transaction.
Timing and Required Approvals
Financial terms of the transaction were not disclosed. The transaction is subject to clearance under the Hart-Scott-Rodino Act and other customary closing conditions. Sensata and Spear Power expect to complete the transaction during the fourth quarter of 2021.