Energy efficiency news - Cyclone Power Technologies to acquire Advent Power Systems

Cyclone Power Technologies to acquire Advent Power Systems

22 Dec 2011

US cleantech engine developer Cyclone Power Technologies has signed an agreement to acquire the assets and business of Advent Power Systems, Cyclone’s exclusive military licencee since 2006. The purchase price for the acquisition is 1.5 million shares of common Cyclone stock.

Advent is a prime contractor in the first stage of a project looking to utilise Cyclone’s engine technology to build a 10kW auxiliary power solution for US military vehicles. Under terms of the purchase, Cyclone will assume control of the $1.4m Army contract, key agreements with sub-contractors on the venture and all opportunities in the Advent pipeline.

Cyclone said that through efficiencies in contract administration, the transaction should enhance profitability and generate around $450,000 in additional revenue from the military contract over the next six to nine months.

Phil Myers, CEO of Advent, will now become a consultant to Cyclone for the next year, assisting the transition process and procurement of other defence awards.

Myers said, ‘I’m very pleased to be joining forces more closely with Cyclone, a company that I’ve worked with and respected immensely over the last five years. I believe that this transaction will be highly beneficial to the successful completion of our US Army contract, and will help attract new customers and strategic partners to Cyclone’s revolutionary engine technology.’

Christopher Nelson, president of Cyclone, added, ‘The acquisition of Advent is an important financial and strategic development for Cyclone. With this purchase we will generate increased revenue from our current contract, and going forward, we will be able to pursue direct contracts with the military. Moreover, bringing on Dr. Myers and his talented team of advisors to help secure additional awards is a big plus. We look forward to working side-by-side with them in the year ahead.’

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