Shell has been steering away from its traditional oil and gas business to the new era of zero-emission electric vehicles.
Shell Inc.’s US-based subsidiary is buying EV charging network operator Volta for $169 million in an all-cash transaction.
Shell USA Inc will acquire all outstanding Class A shares of Volta for 86 cents apiece in a deal that is expected to close in the first half of the year, Volta said.
Volta went public in 2021 through a special-purpose acquisition vehicle (SPAC) merger with blank-check firm Tortoise Acquisition Corp II. The company raised $200 million through investor-backed funding before going public. As part of the deal, Shell USA will also provide loans to Volta to help the company through the closing of the deal.
The San Francisco-based EV charging and media company has deployed Level 2 charging stations at grocery stores, shopping malls, banks, and other business or retail locations. Its advertising-based business model allows it to place its chargers, with huge displays for advertisers, where EV drivers can power up their batteries for free.
Shell is still one of the world’s largest oil companies, but lately, the oil giant has made several investments to diversify its revenue stream away from gas and oil-related products. It currently operates around 90,000 EV charging ports at homes, businesses, and Shell-branded locations, with an extra 300,000 stations available through its roaming networks.
By 2025, Shell looks to operate over 500,000 EV charging ports as it transitions its business to the new era of zero-emission electric vehicles. Shell bought the European charging network ‘ubitricity’ in 2021. The company’s latest acquisition will get it closer to its goal.
Goldman Sachs and Barclays Capital served as advisers to Volta, while Shearman & Sterling LLP served as Shell’s legal adviser.
