Sensata Technologies, a provider of sensor-rich solutions and insights for customers, announced that it has agreed to acquire Dynapower Company LLC, a provider of energy storage and power conversion systems to advance a resilient clean energy future, 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.
A trusted leader with nearly 60 years of experience, 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, and microgrid applications, as well as industrial and defense applications. A broad product portfolio, strong track record in the field and commitment to customers makes Dynapower a trusted global name in energy storage and power conversion. Dynapower also provides aftermarket sales and service to maintain and monitor an installed base of equipment at customer locations. With decades of experience and application expertise in energy storage and power conversion systems for industrial applications, Dynapower is a key player in the clean energy transformation.
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 $800 million addressable market growing to $2.7 billion in 2030, and green hydrogen production, a $250 million market experiencing a period of hyper growth fueled by large private and public investments expected to be a $2.6 billion addressable market in 2030. Dynapower’s recent wins with global blue-chip customers in green hydrogen rectifiers, commercial and 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.
The acquisition of Dynapower is a foundational addition to Sensata’s Clean Energy Solutions strategy and complements Sensata’s recent acquisitions of Gigavac, Lithium Balance and Spear Power Systems. Through its rapid expected revenue growth, Dynapower is expected to represent more than 50% of the $500 million of acquired revenue needed to reach Sensata’s goal of $2 billion in electrification revenue by 2026, as outlined in Sensata’s recent Electrification Teach-In. Further, 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 and industrial, and specialty mobility end markets. The firms’ combined capabilities in electrical protection, energy storage, battery management and power conversion provide a leading solutions capability.