Sensata Technologies has agreed to acquire Dynapower Company, LLC from private equity firm Pfingsten Partners for $580 million in cash.
The transaction is subject to regulatory approvals and other customary closing conditions. Sensata and Dynapower expect to complete the transaction early in the third quarter of 2022.
Dynapower provides energy storage and power conversion systems, including inverters, converters, rectifiers and custom transformers for renewable energy generation, green hydrogen production, electric vehicle charging stations, microgrid applications, and industrial and defence applications.
Dynapower is expected to generate over $100 million in annualized revenue in 2022 with approximately 20% EBITDA margins while averaging annual growth in excess of 30% through 2026.
Dynapower’s addressable markets are large and fast-growing, including energy storage and power conversion systems for grid-tied renewable power conversion – an $800M addressable market growing to $2.7B in 2030, and green hydrogen production, a $250M market experiencing a period of hyper-growth fueled by large private and public investments expected to be a $2.6B addressable market in 2030.
Dynapower’s recent wins with global blue-chip customers in green hydrogen rectifiers, commercial & Industrial power conversions solutions, and front of meter power conversion and energy storage position Sensata and Dynapower to help shape the clean energy transition for customers and partners.
Sensata will enable Dynapower to increase its global exposure, invest in entry into new markets, and successfully scale its business. Dynapower’s capabilities strengthen Sensata’s expertise in energy storage and power conversion across the commercial & industrial, and specialty mobility end markets.