Endurance announces 1st acquisition targeted at the EV opportunity

Electric Vehicles (EV) is a hot theme nowadays. No one wants to be left behind.

Endurance Technologies Limited (ETL) has joined the list and is acquiring 100% of Maxwell Energy Systems Private Limited (Maxwell).

Key points to note –

  • Maxwell is a Mumbai based wholly owned subsidiary of a US company, ION Energy Inc. (“ION”) – a start-up founded by an Indian entrepreneur in 2017.
    • ION is focused on designing and developing advanced electronics platforms targeted towards next-gen mobility and energy storage solutions.
    • Maxwell is focused on battery management systems (“BMS”) for vehicles (including EV) and also for ¬†stationary batteries / energy storage solutions. Maxwells algorithms target to improve battery life and performance.
  • Maxwell customers are OEMs in India and Europe. ETL naturally will try to leverage it’s existing customer relationships to increase the distribution.
  • ETL is acquiring 100% of Maxwell at an estimated cost of Rs 308 crore
    • upfront Rs 135 crore for 51% – fresh as well as secondary stake purchase
    • maximum Rs 173 crore payable during FY23-27 for balance 49%
  • Maxwell’s revenue track record
    • FY 19 – Rs 3.5 cr
    • FY 20 – Rs 6.6 cr
    • FY 21 – Rs 9.1 cr
    • FY 22 – Rs 19.5 cr
    • FY 23 (estimated) – Rs 40 cr

ETL has a mcap of > Rs 17,000 crore. During the just concluded FY 22, it reported revenues and profits of Rs 7,549 and Rs 461 crore respectively.

In the overall scale of things, Maxwell’s acquisition seems to be too small to give much importance as of now.

However, it does seem to be a well structured early stage acquisition in an evolving space.

It would most likely be followed by many other similar initiatives by ETL – something that I intend to keep a close watch on !

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