Monday, September 29, 2008

SatCon sells off two units for $5.6M

By Mass High Tech Staff

Boston-based alternative energy management system maker SatCon Technology Corp. has sold its electronics and motor divisions for a total of $5.6 million in cash.

The deals, which are part of the SatCon’s strategic restructuring plan, will enable the company to focus its financial, technical and marketing resources on the growth of their core photovoltaic and fuel cell power conditioning solutions business, according to the company.

While SatCon did not disclose the individual values of the respective deals, the company’s electronics division will go to Spectrum Microwave Inc., a subsidiary of Spectrum Control Inc. (Nasdaq: SPEC). The motors division, called SatCon Power Systems, will be sold to US Hybrid Corp., a private company based in California focused on the development of components for electric and hybrid vehicles, as well as renewable energy generation and storage.

In addition to the deal price, the buyers will also assume accounts payable and other accrued expenses of approximately $1.8 million as part of the sale.

Founded in 1985, SatCon (Nasdaq: SATC) makes a variety of alternative energy systems for large-scale distributed power systems. The company sells to both the private sector and government agencies.

The company reported $56.6 million in revenue for 2007, while posting a $11.8 million loss.

SatCon is also responsible for the 1997 spinout of Tyngsborough-based Beacon Power Corp. (Nasdaq: BCON), which makes fly-wheel energy storage systems.