US-based Neah Power Systems has announced that it has signed a letter of intent with Bangalore-based Eko Vehicles, a manufacturer of electric two wheelers to explore acquisition or merger plans. Neah Power Systems is into development of fuel cells for the military and portable electronic devices. No transaction details were disclosed.
According to a statement from Neah Power Systems, this combined venture is expected to provide additional opportunities for the expansion of product lines and global growth. Both companies are undertaking due diligence efforts to determine the viability and the structure of the combination.
Eko Vehicles, is a 3-decade-old company based in Bangalore with experience in non-polluting powered vehicle design, testing and manufacturing, industrial consulting and business management. The company is developing “Rapid Battery Charging Stations” at several locations in Bangalore and Mysore to enable customers to charge Eko electric vehicles in under 15 minutes. EKO is planning to introduce electric three-seater, three-wheeler and four-seater, omni-type four-wheelers with the same capabilities.
The company is understood to have mandated PriceWaterhouseCoopers to raise around Rs 25 crore as part of its expansion plans. According to investment bankers, Mahindra & Mahindra were also understood to have shown interest in having an alliance with Eko Vehicles.
NEAH had previously announced a customer relationship with Eko to build fuel cells for Eko’s electric scooter product line. The third generation of EKO product is presently being sold in Asia and will shortly be available in the United States and Europe.
“We intend to take the synergistic relationship between Neah and Eko to new levels. In addition to the fuel cells for electric two wheelers, we see high demand for Neah’s fuel cells for a variety of military and industrial applications in India and Asia, and this relationship could enable us to meet the demand. Our micro fuel cells may eventually replace batteries for most uses,” said Chris D’Couto, President and CEO of Neah Power.
“We welcome NEAH’s technology and we share the common goal of reducing the levels of air and noise pollution, provide cost effective power solutions for two wheeler and four wheeler applications, and enable global growth for our products,” said Anil Ananthakrishna, Chairman and Chief Executive Officer of Eko Vehicles.
